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'''Necessities''' are goods for which demand is [[inelastic]]. An increase in price for these goods does not reduce the demand much, because these goods are essential. [[Income elasticity of demand]] for a necessity is less than one.
'''Necessities''' are goods for which demand is [[inelastic]]. An increase in price for these goods does not reduce the demand much, because these goods are essential and many people will buy them regardless of price. [[Income elasticity of demand]] for a necessity is less than one.
[[Category:Economics]]
[[Category:Economics]]