Explain why the demand for food has an inelastic PeD.

Food is a necessity, people need it to survive, therefore the demand for food is likely to be unresponsive to a change in price because people still have to buy food reguardless of the cost or they will die. There is no alternative for food so the quantity demanded of food will remain the same despite a change in the price. 

A reduction in the price pf food may not lead to a huge increase in quantity demanded as food is seen as a necessity meaning people purchase the same amount of food reguardless of price.

KP
Answered by Kate P. Economics tutor

2286 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

With reference to a poverty trap (poverty cycle), explain how “investing in human development is crucial to ... reducing poverty”


Analyse how an increase in wages could cause inflation.


How can the UK government use fiscal policy to target inflation levels in the economy?


Explain how an increase in interest rates can affect total spending in the UK.


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 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences