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If regardless of changes in its price, the quantity demanded of a good remains unchanged, then the demand curve for the good will be :
- a)horizontal.
- b)vertical.
- c)positively sloped.
- d)negatively sloped.
Correct answer is option 'B'. Can you explain this answer?
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If regardless of changes in its price, the quantity demanded of a good...
Demand Curve for Inelastic Goods
Definition: Inelastic goods are products or services that have a limited change in demand when prices increase or decrease.
Explanation: When the quantity demanded of a good remains unchanged regardless of changes in its price, it is called an inelastic good. In other words, the demand for the good is not very responsive to changes in its price. In this case, the demand curve of the good will be vertical or close to vertical.
Reasoning: The reason for this is that when the price of an inelastic good changes, consumers will continue to buy the same amount regardless of the price change. This is because the good is considered a necessity or has limited substitutes. Therefore, the demand for the good is not very sensitive to changes in its price.
Example: An example of an inelastic good is gasoline. When the price of gasoline increases, consumers will still need to purchase it to fuel their vehicles for work, transportation, and other essential activities. Therefore, the demand for gasoline will not decrease significantly, even if the price increases.
Conclusion: In conclusion, when the demand for a good is inelastic, the demand curve will be vertical or close to vertical. This is because the quantity demanded of the good remains unchanged regardless of changes in its price.
Definition: Inelastic goods are products or services that have a limited change in demand when prices increase or decrease.
Explanation: When the quantity demanded of a good remains unchanged regardless of changes in its price, it is called an inelastic good. In other words, the demand for the good is not very responsive to changes in its price. In this case, the demand curve of the good will be vertical or close to vertical.
Reasoning: The reason for this is that when the price of an inelastic good changes, consumers will continue to buy the same amount regardless of the price change. This is because the good is considered a necessity or has limited substitutes. Therefore, the demand for the good is not very sensitive to changes in its price.
Example: An example of an inelastic good is gasoline. When the price of gasoline increases, consumers will still need to purchase it to fuel their vehicles for work, transportation, and other essential activities. Therefore, the demand for gasoline will not decrease significantly, even if the price increases.
Conclusion: In conclusion, when the demand for a good is inelastic, the demand curve will be vertical or close to vertical. This is because the quantity demanded of the good remains unchanged regardless of changes in its price.
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If regardless of changes in its price, the quantity demanded of a good...
Since the quantity demanded remains unchanged regardless of change in its prices, therefore the commodity has perfectly inelastic demand(E=0) and in this case demand curve will be vertical.
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If regardless of changes in its price, the quantity demanded of a good remains unchanged, then the demand curve for the good will be :a)horizontal.b)vertical.c)positively sloped.d)negatively sloped.Correct answer is option 'B'. Can you explain this answer?
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