13
QuizMultiple Choice

Microeconomics and Entrepreneurship — Test

Question 13 • Personal Finance

Goods that are considered to be needs tend to be

Answer
A
inelastic when the price changes.
B
elastic when the price changes.
C
elastic when the supply changes.
D
inelastic when the supply changes.

Explanation

Goods that people need, such as basic food or medicine, are difficult to do without when their prices rise. As a result, the quantity demanded usually changes relatively little in response to a price change, so demand is inelastic. The correct choice is “inelastic when the price changes.”

AI-written and checked against the verified answer.

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