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 ▸Evaluate the impact of a fall in the price of oil on the market for diesel cars
Explain the effect of a subsidy on equilibrium price and quantity in a demand and supply model.
explain the function of fiscal policy
Why would an increase in demand for a good cause an increase in price for a good?