Which is most likely to have an inelastic demand?
A. an expensive sports car
B. experimental cosmetic surgery
C. organic fruits and vegetables
D. an effective cancer-fighting drug
I'll be glad to check your answer.
http://www.investopedia.com/terms/e/inelastic.asp
i'd go with D.
I agree.
To identify which option is most likely to have an inelastic demand, we need to understand the concept of price elasticity of demand. Price elasticity of demand measures how responsive the quantity demanded of a good or service is to a change in its price. If the quantity demanded changes significantly with a small change in price, the demand is considered elastic. On the other hand, if the quantity demanded changes only slightly when there is a significant change in price, the demand is considered inelastic.
Now, let's analyze the options:
A. An expensive sports car: This option is likely to have an elastic demand. Expensive sports cars are luxury items, and consumers have many substitutes available in the market. If the price of an expensive sports car increases, consumers may choose to buy a different brand or model or even delay their purchase.
B. Experimental cosmetic surgery: This option could have an inelastic demand. Cosmetic surgery is often driven by personal preferences or medical reasons, making it less sensitive to price changes. People who desire specific modifications may be willing to pay a high price for it.
C. Organic fruits and vegetables: This option is also likely to have an inelastic demand. Organic items are often perceived as healthier alternatives, and consumers who prioritize their health may be willing to pay a premium price for them, regardless of small price changes.
D. An effective cancer-fighting drug: This option would also have an inelastic demand. When it comes to life-saving drugs, price tends to have a minimal impact on demand. Patients and their families are less price-sensitive because the drug's effectiveness is crucial to their wellbeing and survival.
Based on these explanations, options B, C, and D are more likely to have an inelastic demand.