Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

goods that are considered to be needs tend to be elastic when the price…

Question

goods that are considered to be needs tend to be
elastic when the price changes
inelastic when the price changes
elastic when the supply changes.
inelastic when the supply changes.

Explanation:

Brief Explanations

Needs are essential goods (e.g., food, shelter). Price elasticity of demand for needs: % change in quantity demanded is less than % change in price (inelastic). Supply - related elasticity is not the focus here. So needs are inelastic to price changes.

Answer:

B. inelastic when the price changes