Question

3 multiple choice 9 points in terms of \demand\, needs are considered to be _____. elastic inelastic 4 multiple choice 9 points in terms of \demand\, wants are considered to be _____. inelastic elastic 5 true or false 9 points i dont have a lot of money for groceries this week. so i buy bagged cereal instead of boxed cereal, and i buy tylenol instead of the medication my doctor prescribed for me. the bagged cereal and tylenol are considered to be \inferior goods\ in this situation. true false

Explanation:

Question 3

In economics (a subfield of Business), needs are essential for survival (e.g., food, shelter). Their demand is inelastic because the quantity demanded changes little with price (people still need them even if prices rise). Elastic demand is for goods where quantity demanded is sensitive to price, which doesn't apply to needs.

Wants are non - essential desires (e.g., luxury goods). Their demand is elastic because the quantity demanded is sensitive to price changes. If the price of a wanted good (like a designer bag) rises, people can easily reduce their demand for it, unlike needs. Inelastic demand is for essential items, not wants.

Inferior goods are those for which demand increases as income decreases. Here, with less money (lower income), the person buys bagged cereal (instead of boxed) and Tylenol (instead of prescribed medication), so demand for these increases as income falls, fitting the definition of inferior goods.

Answer:

B. Inelastic

Question 4