Discussion
Usually, the demand for necessities is .....................
Answer: C
Demand for necessities is usually highly inelastic (the paper prints 'inealstic').
Necessities such as food grains, salt and essential medicines must be bought whatever the price, and they have few substitutes, so a change in price produces a proportionately smaller change in the quantity demanded.
Highly elastic demand is typical of luxuries and goods with close substitutes, infinitely elastic demand is a theoretical case (a perfectly competitive firm's demand curve), and unitary elasticity is the borderline case where spending stays constant.
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