Question by  nUrul (5)

Is the demand for rice inelastic?

This is an economics question. I don't get it.


Answer by  adawg (247)

In some countries, especially in Southeast Asia, they eat rice in their diet every day, thus demand is relatively inelastic. In other countries, like the U.S., rice demand is elastic.

posted by Anonymous
thanks adawq..:)  add a comment

Answer by  Gus28 (683)

Basic issue: If price raised, demand lessens. Price reduced, demand increases. Income elasticity of demand (YED) measures the 1% percentage change of income. When the YED is less than one percent it is inelastic, greater than 1% it is elastic. Since rice is a staple, the probabilty is it's inelastic.

posted by Anonymous
thanks Gus28...:)~nurul  add a comment
You have 50 words left!