Question

name 3 examples of items that have inelastic demand? (remember: items that are \wants\ and/or have many substitutes tend to be elastic. items that are
eeds\ and/or have few substitutes tend to be inelastic.)

Explanation:

Identify inelastic demand characteristics

Using the Price Elasticity of Demand and Determinants of Elasticity knowledge points

Inelastic demand means quantity demanded changes very little when price changes. This typically applies to absolute necessities (needs) and goods with very few close substitutes.

Select three representative examples

Using the Determinants of Elasticity knowledge point

1. Prescription Medicine (e.g., Insulin): A vital medical necessity with no close substitutes; patients must purchase it regardless of price increases.
2. Gasoline: Essential for daily transportation and commuting for most people, with few immediate alternative options.
3. Electricity / Utilities: A basic household necessity required for daily living, with no practical substitutes for powering a home.

Answer:

Three examples of items with inelastic demand are:

1. Prescription Medicine (such as Insulin): A critical medical necessity with no close substitutes.
2. Gasoline: An essential fuel for daily commuting with limited immediate alternatives.
3. Electricity: A basic household utility required for daily modern living.