Economics Elasticity Of Demand Questions Medium
Some examples of goods with inelastic demand include:
1. Necessities: Goods that are essential for daily living, such as food, water, and basic healthcare. These goods tend to have inelastic demand because consumers are willing to pay a higher price for them regardless of changes in price.
2. Prescription drugs: Medications that are prescribed by doctors to treat specific health conditions often have inelastic demand. People who rely on these drugs for their well-being are less likely to be sensitive to changes in price and will continue to purchase them even if the price increases.
3. Fuel: Petroleum products like gasoline and diesel have inelastic demand because they are necessary for transportation and industrial activities. Despite fluctuations in price, people still need to commute to work or run their businesses, so they are less likely to significantly reduce their consumption in response to price changes.
4. Addiction-related products: Goods like cigarettes, alcohol, and certain drugs have inelastic demand due to their addictive nature. Consumers who are addicted to these products are less responsive to price changes and will continue to purchase them even if the price increases.
5. Unique or branded products: Goods that have a strong brand image or unique features often have inelastic demand. Consumers who are loyal to a particular brand or value the distinct qualities of a product are less likely to switch to alternatives, even if the price increases.
It is important to note that the elasticity of demand can vary across different markets, time periods, and consumer segments. While these examples generally exhibit inelastic demand, the degree of elasticity may still vary depending on various factors.