Difference between revisions of "Necessities"
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| − | Necessities are goods for which demand is inelastic. No matter how high the price goes, demand will still remain static, because they are essential. [[Income Elasticity of Demand]] for a necessity is less than one. | + | '''Necessities''' are goods for which demand is inelastic. No matter how high the price goes, demand will still remain static, because they are essential. [[Income Elasticity of Demand]] for a necessity is less than one. |
[[Category:Economics]] | [[Category:Economics]] | ||
Revision as of 20:08, May 22, 2007
Necessities are goods for which demand is inelastic. No matter how high the price goes, demand will still remain static, because they are essential. Income Elasticity of Demand for a necessity is less than one.