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Q. |
The demand for necessities is - |
A. | elastic |
B. | perfectly inelastic |
C. | inelastic |
D. | perfectly elastic |
Answer» B. perfectly inelastic | |
Explanation: Inelastic demand means that if the price changes, the quantity demanded will not change much. The more necessary a good is, the lower the elasticity, as people will attempt to buy it no matter the price. Necessities such as water are likely to have perfectly inelastic demand. |
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