Explain why food is price inelastic.

The price elasticity of a good measures the proportionate change in demand to an inital change in price. If a good is price inelastic it suggests that an increase in price leads to a less than proportionate change in demand. 

Food can be considered a neccessity since it is neccessary for human survival; there are no substitutes for sustaining life. This means that food can be considered price inelastic since an increase in price will not lead to a significant drop in demand since consumers have no choice but to purchase the food. 

RS
Answered by Roscoe S. Economics tutor

11963 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Explain why income tax in the UK is an example of progressive taxation?


Explain two benefits to the government that falling unemployment provides.


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


Why do price of exchange rates increase when interest rates increase? What does it mean that a currency is strong?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning