51.0k views
0 votes
Certain kinds of goods tend to have inelastic demand; a good usually has inelastic demand if what?

User Watkins
by
7.7k points

1 Answer

0 votes
usually if it's an basic good, or very important one.

because the price fluctuations do not affect the quantity sold.

a good example of that would be milk, if the milk gallon is say $8, and a family needs 1 gallon daily, they buy it for $8.

if the price drops to $7, they might buy 2, but they only need 1 everyday, just in case they may get another.

if the price drops to $4 or even $3, they're not going to get 10 gallons, there's no need for it on an everyday basis, besides is a perishable.

now if the price goes up to $12, they still need it, and will buy it for $12.
User Bradtgmurray
by
8.8k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories