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if a good has a price inelastic demand (not quite responsive to price), then which of the following is likely to be characteristic of this good?
Consumers do not have much time to adjust to market changes
Good is a necessity
Consumers spend a small percentage of their income on the good

Respuesta :

If a good has a Price Inelastic Demand  then

  • Good is a necessity
  • Consumers do not have much time to adjust to market changes

Hence, Option 1 and 2 are correct.

What do you mean by Price Inelastic Demand?

  • Inelastic demand can be defined as the price of a good or service which when goes up or goes down does not affect the  consumers' buying habits.
  • It includes  necessities like food and fuel.
  • It causes a very much smaller percentage change in demand.
  • It usually occurs where there is a price elasticity of demand (PED) of less than one.
  • They have very few substitutes.

Hence,  Option 1 and 2 are correct.

To know more about Price Demand from the given link

https://brainly.com/question/5078326

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