QQuestionEconomics
QuestionEconomics
Which of the following statements is true, according to the video?
Multiple Choice
The more time passes, the more elastic the demand for a good becomes.
The demand for gasoline is more elastic than the demand for vacations.
Luxuries have more inelastic demand, because those that buy them tend to be rich.
The demand for medical care is more elastic than the demand for fresh fruit.
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Answer
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Step 1: Analyze the statements and the video's content to identify which statement aligns with the video's message.
Step 2: Recall that elasticity refers to the responsiveness of quantity demanded to changes in price.
A good is said to have elastic demand if the quantity demanded significantly changes with price fluctuations. Conversely, a good has inelastic demand if the quantity demanded remains relatively unchanged despite price fluctuations.
Final Answer
The statement "Luxuries have more inelastic demand, because those that buy them tend to be rich" is true according to the video.
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