elasticity? 7 of 8 which of the following goods is likely to have elastic demand? luxury cars basic food…
elasticity? 7 of 8 which of the following goods is likely to have elastic demand? luxury cars basic food items prescription medication electricity
Answer
Brief Explanations:
Elastic demand means that a change in price leads to a relatively large - change in quantity demanded. Luxury cars are not necessities. When their price changes, consumers can easily choose not to buy them or switch to other substitutes. Basic food items, prescription medication, and electricity are necessities, and demand for them is less responsive to price changes (inelastic).
Answer:
A. Luxury cars