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Changes in price do not always impact demand to the same degree, and in some cases change in price impact demand very little. These goods are said to have a relatively inelastic demand. What would make a good have a level of demand that is relatively inelastic, and what are some examples?

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Solution Summary

Inelastic demand for goods is examined. The level of demand is determined after the change in price.

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A good has an inelastic demand if there are few substitutes. Since people have very less (or no) alternatives, they must ...

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