Difference between revisions of "Necessities"
Jump to navigation
Jump to search
Reaganomist2 (talk | contribs) |
m (link) |
||
| Line 1: | Line 1: | ||
| − | '''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 22:08, June 1, 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.