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siniylev [52]
3 years ago
15

If the quantity demanded of a good changes drastically when the price changes, the good is relatively

Social Studies
2 answers:
vazorg [7]3 years ago
6 0

If the quantity demanded of a good changes drastically when the price changes, the good is relatively elastic.

If the quantity demanded of a good does not change much when the price changes, the good is relatively inelastic.

Based on this graph, the good being shown is most likely inelastic.

nadezda [96]3 years ago
3 0

If the quantity demanded of good changes drastically when the price changes, the good is relatively elastic. Elastic is an economic term describing the change in the behavior of buyers and sellers in response to a price change for a good or service. For example, these days there are many alternatives to Heinz soup. If price rises, people will switch to less expensive varieties. Instead, tap water is a necessity with no alternatives. If the water company increase the cost of water bills, people would keep buying the service. It would have to rise to a very high price before people disconnected their water supply. This is why tap water is regulated by the government.

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