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.
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