Economics Elasticity Of Demand Questions Medium
The price elasticity of demand for a necessity is generally inelastic, meaning that the demand for the product is not very responsive to changes in price. Necessities are goods or services that are essential for daily living, such as food, water, housing, and healthcare. People tend to prioritize these items and are willing to pay a higher price for them, regardless of changes in price. Therefore, the demand for necessities is relatively insensitive to price fluctuations, resulting in a low price elasticity of demand.