question archive A life-saving medicine without any close substitutes will tend to have: a
A life-saving medicine without any close substitutes will tend to have: a
Subject:EconomicsPrice:2.88 Bought3
A life-saving medicine without any close substitutes will tend to have:
a. A small elasticity of demand,
b. A large elasticity of demand,
c. A small elasticity of supply,
d. A large elasticity of supply.
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The correct answer to the given question is option a. A small elasticity of demand.
The elasticity of demand is determined by dividing the percentage change in quantity demanded by the percentage in its price. The quantity demanded for a life-saving medicine without any close substitutes is hardly changed due to an increase in its price. Hence, one can say that the demand for a life-saving medicine without any close substitutes is inelastic or the elasticity of demand for such medicine is small.
