Asked by Mercedez Miller on Jul 27, 2024
Verified
The demand for gasoline is likely to be more inelastic than the demand for sushi.
Inelastic Demand
A situation where the demand for a product does not change significantly with a change in its price.
Gasoline
A volatile, flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.
Sushi
A traditional Japanese dish consisting of vinegared rice, usually accompanied by various ingredients like seafood, vegetables, and occasionally tropical fruits.
- Comprehend the correlation between the elasticity of demand and spending on various products, distinguishing between luxury items and essentials.
Verified Answer
GS
Gabriela SonzogniAug 01, 2024
Final Answer :
True
Explanation :
Gasoline is a necessity for many people, especially those who rely on cars for transportation, making its demand less sensitive to price changes. In contrast, sushi is a luxury good for many, making its demand more sensitive to price changes, hence more elastic.
Learning Objectives
- Comprehend the correlation between the elasticity of demand and spending on various products, distinguishing between luxury items and essentials.