Which of the following is the best example of a good that has inelastic demand?
A restaurant owner has not changed menu prices in a year
. One month ago, the owner noticed that sales for all lunch items had fallen by 50 percent.
Which good is considered to have an inelastic demand?
Inelastic demand applies to products that
are hardly responsive to price changes
, such as gasoline or toilet paper. The demand for gas exemplifies it. Consumers will not buy more or less gas, despite a price increase or decrease.
What is an example of a inelastic good?
Examples of Inelastic Products
The most common goods with inelastic demand are
utilities, prescription drugs, and tobacco products
. In general, necessities and medical treatments tend to be inelastic, while luxury goods tend to be the most elastic. Another typical example is salt.
Which is the best example of good with a perfectly inelastic demand?
An example of perfectly inelastic demand would be
a lifesaving drug that people will pay any price to obtain
. Even if the price of the drug would increase dramatically, the quantity demanded would remain unchanged.
Which product is an example of a good with inelastic demand Brainly?
Answer: If the elasticity quotient is less than one, the demand is considered to be inelastic. The most common goods with inelastic demand are
utilities, prescription drugs, and tobacco products
. Another typical example is salt.
Is water an inelastic good?
Price elasticity estimates for water across the United States generally are observed as
inelastic
.
What is an inelastic good?
Inelastic means that a
1 percent change in the price of a good or service has less than a 1 percent change in the quantity demanded or supplied
. … Supply could be perfectly inelastic in the case of a unique good such as a work of art.
What does an inelastic curve look like?
Hint: You can use perfectly inelastic and perfectly elastic curves to help you remember what inelastic and elastic curves look like: an Inelastic curve is
more vertical, like the letter I
. An Elastic curve is flatter, like the horizontal lines in the letter E.
What are three reasons why salt is more inelastic than fresh tomatoes?
3. What are three reasons why salt is more inelastic than fresh tomatoes?
Salt is inelastic because there are no good substitutes
; it is a necessity to most people, and it represents a small proportion of most people’s budget.
What is the price elasticity of demand can you explain it in your own words?
The price elasticity of demand is
the percentage change in the quantity demanded of a good or service divided by the percentage change in the price
. The price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price.
Are cars inelastic?
For example, the demand for automobiles would, in the short term, be somewhat elastic, as the purchase of a new vehicle can often be delayed. … This would tend to produce a highly
inelastic demand
.
What is cross price elasticity?
Also called cross-price elasticity of demand, this measurement is
calculated by taking the percentage change in the quantity demanded of one good and dividing it by the percentage change in the price of the other good
.
What goods are perfectly elastic?
Examples of perfectly elastic products are
luxury products such as jewels, gold, and high-end cars
.
Which would cause an increase in the demand for product A?
An increase in income
will tend to increase the demand for a product. When two products are substitute goods, the price of one and the demand for the other will tend to move in the same direction. If two goods are complementary, an increase in the price of one will tend to increase the demand for the other.
What’s the price at which the quantity of demand for a product equals the quantity of supply?
A market-clearing price
is the price of a good or service at which quantity supplied is equal to quantity demanded, also called the equilibrium price.
Are Diamonds elastic or inelastic?
While a specific product within an industry can be elastic due to the availability of substitutes, an entire industry itself tends to be inelastic. Usually, unique goods such as diamonds are
inelastic
because they have few if any substitutes.
