Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Which of the following is true in regards to the demand for essential goods? 

Options:

Have elastic demand 

Have inelastic demand

Have unitary elastic demand

None of the above

Correct Answer:

Have inelastic demand

Explanation:

Inelastic demand indicates that there is zero or very miniscule change in the quantity demanded in response to change in price. This is mostly seen in the case of inelastic commodities or essentials i.e. medicines etc. Even if the price increases, the demand for medicine will not decrease because the required amount of medicine has to be taken irrespective of its price.