QuestionJuly 30, 2025

Necessities have highly elastic demand curves True False

Necessities have highly elastic demand curves True False
Necessities have highly elastic demand curves
True
False

Solution
3.0(308 votes)

Answer

False Explanation 1. Define Elasticity of Demand Elasticity of demand measures how quantity demanded responds to price changes. Highly elastic means a small price change causes a large change in quantity demanded. 2. Analyze Necessities Necessities are goods that people need regardless of price, so their demand is typically inelastic (not highly responsive to price changes).

Explanation

1. Define Elasticity of Demand<br /> Elasticity of demand measures how quantity demanded responds to price changes. Highly elastic means a small price change causes a large change in quantity demanded.<br /><br />2. Analyze Necessities<br /> Necessities are goods that people need regardless of price, so their demand is typically inelastic (not highly responsive to price changes).
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