Explain why demand for food is relatively price inelastic?

Food is relatively price inelastic as it is considered a necessity which means that everyone needs it. If price were to rise there wouldn't be any change in consumption as people require it to live so therefore would carry on purchasing it. Furthermore there are no significant substitutions to food, everyone requires it. This also means that a rise in price would lead to no significant change in consumption. As a result food is clearly price inelastic.

Answered by James R. Economics tutor

1245 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What is a production possibility frontier?


State and explain a determinant of demand for a product.


Evaluate the use monetary policy to aid the economy's recovery just after a recession.


Explain why the UK have different minimum wage rates for different age groups


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2024

Terms & Conditions|Privacy Policy
Cookie Preferences