Necessities with no close substitutes: Are likely to have highly elastic demand curves. Are likely to have highly inelastic demand curves. Are likely to have highly inelastic supply curves. Are likely to have highly elastic supply curves. Will always have unitarily elastic demand curves

Necessities with no close substitutes: Are likely to have highly elastic demand curves. Are likely to have highly inelastic demand curves. Are likely to have highly inelastic supply curves. Are likely to have highly elastic supply curves. Will always have unitarily elastic demand curves

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 20SQ

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Concept explainers

Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.

Question

Necessities with no close substitutes:

Are likely to have highly elastic demand curves.

Are likely to have highly inelastic demand curves.

Are likely to have highly inelastic supply curves.

Are likely to have highly elastic supply curves.

Will always have unitarily elastic demand curves.

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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