Question

In which type of goods, price fall does not make any increase in demand?

• A. Necessary goods
• B. Comfort goods
• C. Luxurious goods
• D. None of these

Hint:

Demand for necessities is inelastic. Price changes don't significantly change how much we buy.

Answer 1

The Correct Option is A

The demand for necessary goods (also called essential goods), such as salt, matches, or life-saving medicines, is typically perfectly inelastic. This means that a change in price has little to no effect on the quantity demanded. People need a certain amount of these goods regardless of the price. Therefore, even if the price falls, the demand will not increase because consumers are already buying as much as they need.