Necessities Tend to Have More Inelastic Demand Than Luxuries

question 192

True/False

Necessities tend to have more inelastic demand than luxuries.

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Definitions:

Fossil Fuels

Natural fuels such as coal, oil, and natural gas derived from the remains of living organisms that have been buried for millions of years.

Migratory Birds

Birds that travel from one region or climate to another at regular times of the year, often for breeding or climate conditions.

Fallacy of Composition

The error of assuming that what is true of a member of a group is true for the group as a whole.

Complex Product

A product that is made up of various components and possibly involves intricate processes in its manufacture or usage.