The correct option is B.
Goods that are considered to be needs are inelastic when the price changes, meaning that the demand for these essential items does not significantly change with price increases or decreases.
Goods that are considered to be needs tend to be inelastic when the price changes. This means that the demand for necessary items does not significantly change with a change in price. Essential goods such as food, water, and shelter are typically inelastic because consumers will continue to buy these items even if prices increase, up to a certain point. Necessities are inelastic because they are critical for daily living, and consumers have little to no flexibility in deciding whether to buy them or not, unlike luxury items which have more elastic demand.
It is important to note that elasticity can change over time and may be influenced by cultural shifts, changes in consumer preferences, and the availability of substitutes. While price elasticity is predominantly used to analyze consumer behavior as prices fluctuate, economists also examine how sensitive supply is to price changes, representing supply elasticity. However, for necessities, the focus is mostly on demand elasticity due to their essential nature.
The complete question is given below:
Goods that are considered to be needs tend to be?
A. Elastic when the price changes
B. Inelastic when the price chances
C. Elastic when the supply changes
D. Inelastic when the supply changes