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slavikrds [6]
2 years ago
13

what might cause a consumer to have an elastic demand for a product? a. the product is a necessity. b. the product was produced

outside of the united states. c. the product isn't a necessity. d. the product is priced at $5.
History
2 answers:
Anna11 [10]2 years ago
5 0
The one that cause a consumer to have an elastic demand for a product is : C. the product isn't a necessity

If that product is a necessity (such as food and water), the demand wouldn't be affected by prices because people will still buy it anyway

hope this helps
NikAS [45]2 years ago
5 0

The correct answer is C.

The elasticity of a demand function refers to the percentage variation in the quantity demanded of a product, when its price changes. According to the law of demand, there is an inverse relationship between quantity demanded and price and, hence, when the price of a product increases, the number of consumers willing to purchase it decreases. <u>The size of such variation is measured by the elasticity. The greater the variation, the more elastic the curve is. </u>

Products which satisfy basic needs (water, electricity, bread) tend to have more inelastic demands as, no matter whether its price increases, consumers continue purchasing it. The decrease in the amount demanded is small. On the other hand<u>, when the good is not basic or, when there are proper substitutes, the product will have a more elastic demand. </u>Consumers can easily switch to another soda drink if the price of CocaCola increases too much or, also, they can live without soda drinks at all.

<u></u>

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