Explain why the demand for food is relatively price inelastic

Food is a nessecity, there will always be demand for food. There are no substitutes and therefore, a change in price will not cause a change in demand. Thus the market is relatively price inelastic with a near vertical demand curve.

DB

Related Economics GCSE answers

All answers ▸

Explain how a fall in interest rates can affect total spending in the economy.


Discuss the effectiveness of a change in the exchange rate in order to correct a trade deficit.


Give two disadvantages to the government of rising unemployment.


What are the short term pricing differences in the different market structures?