Which characteristic is true for inelastic demand items?

Prepare for the Economic Principles Test. Study with interactive questions and detailed explanations on each topic. Boost your understanding and confidence to ace your exam!

Inelastic demand items are characterized by consumers' relatively unresponsive behavior to changes in price. When a product has inelastic demand, it means that even if the price increases, the quantity demanded does not decrease significantly. This is often the case for addictive goods.

Addictive products—such as cigarettes, alcohol, and certain prescription drugs—create a dependence in consumers, making them less sensitive to price changes. People who are addicted to a substance tend to continue purchasing it despite increases in price because they feel a strong need or desire for it. This results in a demand curve that is steep, reflecting a smaller change in quantity demanded with a significant change in price.

The other options refer to characteristics that typically lead to elastic demand. If a product has many close substitutes, is not a necessity, or can be easily replaced, consumers can easily shift their purchases in response to price changes, indicating elastic demand instead.

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