Explain why the demand for food is relatively price inelastic
Food is a necessity to which there is no substitute. As a result, more consumers will be willing to pay higher prices, meaning a change in price will not cause a proportionate change in demand
JO
Related Economics GCSE answers
All answers ▸How would an increase in interest rates impact aggregate demand
With the help of a diagram, explain the cause of demand-deficient unemployment.
Evaluate the use monetary policy to aid the economy's recovery just after a recession.
What kind of effect would a national minimum wage have, is it positive or negative ?