GCEEconomicsElasticity2024

Which of the following goods is most likely to have a perfectly inelastic demand?

ALuxury wristwatches
BInsulin for diabetic patientsCORRECT
CForeign holidays
DBrand-name soft drinks
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Perfectly inelastic demand means consumers buy the same quantity regardless of price changes. Insulin is a life-sustaining drug for diabetics who have no substitute and must consume it irrespective of price, making its demand closest to perfectly inelastic. The other goods have readily available substitutes or are non-essential.
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