Asked by Lupita Sanchez on Jul 06, 2024
Verified
The demand for goods such as telephone service and medical care tend to be
A) perfectly elastic.
B) relatively elastic.
C) unit elastic.
D) relatively inelastic.
Telephone Service
A communication service provided through electrical transmission of voice, fax, or other information.
Medical Care
Professional services provided by doctors, nurses, dentists, and other health professionals to treat or prevent health problems and enhance well-being.
Perfectly Elastic
A situation in economics where the quantity demanded or supplied changes infinitely in response to any change in price, typically represented with a horizontal demand or supply curve.
- Gain insight into the concepts of demand and supply elasticity.
- Determine the determinants affecting the flexibility or rigidity of product demand or supply.
Verified Answer
PP
Parth PradhanJul 10, 2024
Final Answer :
D
Explanation :
The demand for goods such as telephone service and medical care tends to be relatively inelastic because they are considered as necessities for many people despite the changes in prices. Therefore, the changes in prices are unlikely to significantly affect the quantity demanded by consumers.
Learning Objectives
- Gain insight into the concepts of demand and supply elasticity.
- Determine the determinants affecting the flexibility or rigidity of product demand or supply.