The correct option for this answer is inelastic when the price changes.
Further Explanation:
Goods are those items that are considered to be needs known as necessity goods. As necessity goods are the basic goods which fulfill the basic requirement of the individual, institutions and, company as well. For example- salt.
Elastic means a minor change in the price tends to drastic changes in the quantity required for the particular goods.
Inelastic means whether the price decrease or increase, the quantity required for particular goods doesn't change.
Price Change means a change in the price of a particular good whether increase or decrease in the quantity.
Supply changes mean any change in the quantity of the goods in the market due to change in the technology, production process and any change in the supplier whether the change in the output of the market.
•for the necessity goods, the price changes does not affect the change in the quantity demanded. For example, salt is the basic need for every individual, if any increase or decrease in the price of the salt. There will be no change in the demand for salt. As the option elastic when the price change is not correct.
•when the price changes, the demand for the necessity goods is inelastic. As explained in the above, with the help of an example.
•the supply changes mean whether the increase or decrease in the supply of necessity goods. There will be no effect of the changes in supply on the prices of necessity goods. So, the option elastic when the supply change is not correct.
Therefore, goods considered to need tends to be inelastic when the price changes.
Learn more:
1.Learn more about the supply
2.Learn more about the type of goods
3.Learn more about the price change
Answer details:
Grade: Middle School
Subject: Economics
Chapter: Elasticity of goods
Keywords: necessity goods, drastic changes, due to change in the technology, production process, any change in the supplier, change, output of the market, law of supply & law of demand.
