Question: Demand for wheat is
Options:
Relatively elastic
Relatively inelastic*
Perfectly elastic
Perfectly inelastic
✅Explanation: Wheat is a staple food for many people. Even if the price increases, people might not significantly reduce their consumption because they need it for basic sustenance. This suggests a relatively inelastic demand.
📌 Other Options Explained:
-a) Relatively elastic: This would imply a larger decrease in quantity demanded with a price increase, which isn't typical for wheat.
-c) Perfectly elastic: This is a theoretical case where a small price increase leads to zero demand, which isn't realistic for wheat.
-d) Perfectly inelastic: This suggests no change in quantity demanded regardless of price changes, which is also unrealistic for most goods.