Three goods for which the demand is inelastic with respect to price are tap water, gasoline, and diamonds. Tap water is a necessity for people in everyday household tasks. If the water bills were to rise people would still pay because they need tap water for everyday tasks. Most Americans need gasoline to fuel their cars. Whether gas prices rise or fall people still continue to buy gasoline because there is not an alternative. Diamonds are a luxury product and prices usually rise not fall because they hold their value. There is no alternative to a diamond, but other gems. These goods do not have many alternatives as to why they are inelastic. Inelastic is when the demand of goods does not change when the price of the good changes.
Understanding
Understanding