Which has more elastic demand?
1. Insulin or nasal decogestant spray?
Answer:
The answer is nasal decongestant spray. Insulin is used by people with Diabetes who need it in order to survive, therefore they will essentially demand the same quantity regardless of price. In contrast, people can live without nasal decongestant spray and will therefore reduce their demand for it as its price rises, so it is more elastic
The more elastic is demand for a good, the more the more the quantity of that good demanded falls when its price rises by 1%. So, for which good, insulin or nasal spray, do you think quantity demanded will fall more, if that good's price rises by 1%?
The Nasal Decongestant Spray.
Insulin is a necessity that diabetics need to take to survive. whether the price of insulin goes up or down, demand for it won't change.
There are also other remedies for nasal congestion.
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Answer:
The answer is nasal decongestant spray. Insulin is used by people with Diabetes who need it in order to survive, therefore they will essentially demand the same quantity regardless of price. In contrast, people can live without nasal decongestant spray and will therefore reduce their demand for it as its price rises, so it is more elastic
The more elastic is demand for a good, the more the more the quantity of that good demanded falls when its price rises by 1%. So, for which good, insulin or nasal spray, do you think quantity demanded will fall more, if that good's price rises by 1%?
The Nasal Decongestant Spray.
Insulin is a necessity that diabetics need to take to survive. whether the price of insulin goes up or down, demand for it won't change.
There are also other remedies for nasal congestion.
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