Which Of The Following Is Likely To Have The Most Price Inelastic Demand?

Q. Which Of The Following Is Likely To Have The Most Price Inelastic Demand?

1. Toothpaste
2. Mint flavored Toothpaste
3. Car
4. Flight tickets

Ans: a) Toothpaste

Are you searching for the answer to which of the following is likely to have the most price inelastic demand? If yes, then you have come to the right place.

If your answer is Toothpaste, then you are absolutely correct! So now is the time for you to know about the explanation. But before starting with the explanation for the answer, let me tell you what inelastic demand is.

So if you want to know more about this topic, keep on reading this article till the end…

Inelastic Demand: What Is that?

When it comes to economics, there are certain types of demands. One of them is inelastic demand.

You may have seen people buying goods that they require on a daily basis. One of the best examples of these items is toothpaste or salt. We need these items regularly. It does not matter when the price of these commodities changes. The demand for these materials does not change significantly with the increase in price.

These demands are inelastic demands. In other words, these are the demands that do not change. Hence, inelastic.

To put it simply, in economics, the type of demand that does not change significantly with the increase in price is called inelastic demand.

Explaining The Answer To “Which Of The Following Is Likely To Have The Most Price Inelastic Demand?”

Now, keeping in mind the commodities that are provided in the list are items that we can see commonly around us, you should know that demands for them can never decrease. And why is it so?

It is because they are our basic commodities. They are needed. They are necessities.

That is the reason why even if their price changes a bit, they will not have a significant effect on the demand.

If you chose the answer to be Toothpaste in the above question among the other options, then let me tell you that you are absolutely correct. One of the major reasons why it is so is because toothpaste is a basic commodity.

It doesn’t matter how much the toothpaste costs. They are still going to get used by the common people.

In other words, the commodity, which is toothpaste in the above option, is one that you can find in most households. And it is impossible for you not to brush your teeth after you wake up in the morning.

Toothpaste is not a luxury. It is a necessity. That is the reason why it does not matter if the price of the toothpaste changes. It will still not make any difference to the demand.

However, the same idea does not apply to the various flavors and brands of toothpaste. So, for example, if you are using mint-flavored toothpaste and the price of the brand or the flavor increases, you might think about switching from that particular taste or brand of toothpaste and using another.

In this case, you are still using toothpaste, but just not the exact kind that you used before.

You should keep in mind in this context that I am talking about the basic commodity and not the variations of the same.

On the other hand, even if you start earning a lot of money in the future, you still will not stop using toothpaste. Thus, the demand for toothpaste will not change and will remain static, hence inelastic, even if your income increases.

The demand for basic commodities like toothpaste will remain static irrespective of the changes in its surrounding factors. This is because there are no products that will be able to substitute toothpaste (at least at present). These kinds of demands are called inelastic demands.

Commodities With Inelastic Demand: Here Are A Few Examples!

Now, you might think about all the other goods whose demands are inelastic. There are certain commodities for which it does not matter how you market your business. No matter what, some items are not affected by the changes in demand. These are the goods with inelastic demand.

Here is a list of examples that can make it easier for you to know about the nature of elasticity of their demands:

• Salt
• Toothpaste
• Diamonds
• Gold
• Cigarettes
• Petrol
• Diesel
• Sugar
• Tap water

There are many other items that have an inelastic demand. For example, smartphones and devices like Apple. It is a big brand with a huge number of followers and a consumer base. So, it does not matter how much the price increases. The demand for the product will not get affected significantly.

Frequently Asked Questions (FAQs):

Now that you have read this blog and reached almost the end of it, I hope that most of your queries have already been answered. However, as there might be some other confusion, it is best that you check out some of the questions that readers frequently ask!

Wrapping It Up!

We all know about the importance of marketing to a business. However, for some commodities, marketing does not matter. That is because they will always be in demand.

When it comes to economics, there are many types of price elasticity of demand. One of them is Inelastic demand. If you were searching for the answer to “which of the following is likely to have the most price inelastic demand?” then the answer is toothpaste.

In case you were searching for the answer to “which of the following is likely to have the most price inelastic demand?” I hope that you found this article to be of help. Also, if there are any other questions and suggestions related to the same, feel free to write them down in the comment box below.

Read Also:

• 6 Efficient Ways To Improve Your Business Visibility
• Small Business Ideas In India With Low Investment.
• Why Small Businesses Should Invest In The CRM Solution.