Goods that are considered to be needs tend to be:

• A. inelastic in demand
• B. perfectly competitive
• C. luxury goods
• D. elastic in demand

Answer: (A)

Verified step by step guidance

1. Understand the concept of price elasticity of demand, which measures how much the quantity demanded of a good responds to a change in its price.
2. Recall that goods considered 'needs' are essential for consumers, so their demand does not change much when the price changes.
3. Recognize that inelastic demand means the percentage change in quantity demanded is less than the percentage change in price, indicating consumers are less sensitive to price changes.
4. Compare this with elastic demand, where consumers are more sensitive to price changes, and luxury goods, which tend to have more elastic demand because they are not essential.
5. Conclude that since needs are essential and less sensitive to price changes, they tend to have inelastic demand.