Q38) During lockdown due to COVID-19, a consumer finds the vegetable vendors selling vegetables in the street have raised the prices of vegetables than usual prices. She will buy _____ vegetables than/as her usual demand showing the demand of vegetables is ______.

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Solution:
If the demand for vegetables is inelastic, the consumer will continue to buy vegetables at the higher prices because there are no close substitutes for vegetables, and the consumer considers them to be a necessity. In this case, the consumer may buy the same amount of vegetables as usual or even more because the demand is relatively unresponsive to price changes.
Correct option is (c)

C A foundation Economics Paper4 Part I Questions for practice