Which of the following is true in regards to the demand for essential goods?
Answer & explanation
Correct answer: option 2
The correct answer is Option 2: Have inelastic demand
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.