Which of the Following Products Comes Closest to Having a Perfectly

question 149

Multiple Choice

Which of the following products comes closest to having a perfectly inelastic demand?

• A)gasoline
• B)cholesterol medication in general
• C)iPhones
• D)bus rides

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Definitions:

Coke

A fuel with a high carbon content and few impurities, made by heating coal in the absence of air, used mainly in steel manufacturing.

Income Effect

The alteration in the income of either a person or an economy and the impact this change has on the demand for a specific product or service.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite to normal goods.

Substitution Effect

The change in consumption patterns due to a change in the price of goods, leading consumers to substitute one good for another.