Question 58
MediumOriginal questionMatch each good with the most likely elasticity of its demand.
| List I | List II |
|---|---|
| A. A brand of soap among many | I. Nearly perfectly inelastic |
| B. Insulin for a diabetic | II. Elastic, as a postponable luxury |
| C. A wheat farmer's output in a large market | III. Elastic |
| D. Air travel for holidays | IV. Perfectly elastic for the single farmer |
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
A soap brand has close substitutes: elastic. Insulin has none and is vital: nearly perfectly inelastic.
One farmer can sell all he wants at the market price: perfectly elastic for him. Holiday flights can be postponed: elastic.
- Concept
- Elasticity in practice
- Typical timeTypical
- 90 s
- Your timeYours
- —
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