Business, 19.09.2019 09:30 ioifjifjie3054

In economics, if a good is inelastic,
consumers have lost an interest in purchasing it.
producers have lost an interest in manufacturing it.
its supply or demand is too sensitive to price changes.
its supply or demand is not sensitive to price changes.

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Answer from: marcucciisabella

In economics, if a good is inelastic, then its supply or demand is not sensitive to price changes.

Changes or fluctuations in market prices does not affect the supply and the Demand of inelastic goods.

Further Explanation; Inelastic goods, are types of goods whose demand and supply is not affected by changes in market prices. That is an increase or decrease in market price does not affect their supply or demand. When the price of an inelastic good changes, its supply and demand is unaffected. Examples of such goods include, water and food. Therefore, for inelastic goods, the consumer buying strength and habits remain the same. Demand and supply in determination of market price Demand refers to the quantity of goods or services that consumers are willing and able to buy at a particular price while supply is the quantity of goods or services that suppliers are willing to supply to the market at a particular price. One of the factor that determine market prices are the forces of demand and supply, this is based on the ability and willingness of buyers and sellers to undertake selling and buying. Buying and selling occurs at an equilibrium price that is agreed upon by sellers and buyers. This means the sellers and buyers are willing to exchange a certain quantity of a commodity at this price. Thus, price depends on the demand and supply in the market. However, for inelastic goods such as water and food, the consumer has no option than to buy them at existing prices since they are necessity goods.

Keywords; Inelastic goods, demand and supply, market price.

Learn more about: Demand and supply; link Effect of supply and demand on market price: link

Level; High school

Subject: Business

Topic: Demand and supply

Sub-topic: Types of goods

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In economics, if a good is inelastic,
consumers have lost an interest in purchasing it.
...

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