What elasticity does "Medicines" carry?
Answer & explanation
Correct answer: option 1
the correct answer is Option 1: Inelastic
Inelastic demand of a commodity indicates that a change in price results in relatively less change in quantity demanded.
Medicines have inelastic demand. This means that changes in price have a relatively small effect on the quantity demanded because medicines are often considered necessities. People will generally continue to purchase them even if prices increase, as they are essential for health and well-being.