Explain why the demand for food is relatively price inelastic.

A good that is relatively price inelastic is one whose demand will not change much as a result of a change in its price level.Food is a necessity good and therefore consumers will continue to purchase it at virtually any price. Food is said to be relatively price inelastic as an increase in its price will only lead to a small decrease in demand. Likewise, a decrease in price will only lead to a small increase in its demand.

OT
Answered by Oliver T. Economics tutor

1813 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What are causes of globalisation?


Explain why firms in the pharmaceutical industry can charge different prices for the same drug in different countries. (15 marks)


Explain a benefit of international trade for UK consumers


What factors cause the shifts and movements of the demand curve?


We're here to help

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

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences