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 ▸Define the term PPF and illustrate it.
The National Living Wage (NLW) government policy target is to increase the NLW to £9 per hour by 2020. Explain two possible impacts of this policy on the UK supermarket industry.
what are the differences between perfect competition and monopolistic competition
Evaluate the case that economic growth is always beneficial to a country