Why might the demand curve for luxury handbags be more elastic than the demand curve for insulin?

• A. Because insulin is typically heavily regulated and subsidized by governments so its price changes do not affect demand, whereas handbags face more international competition.
• B. Because luxury handbags are nonessential goods with many close substitutes and purchases can be delayed, while insulin is a life‑saving necessity with few or no substitutes, making insulin demand highly inelastic.
• C. Because consumers often view handbags as inferior goods whose demand falls rapidly when prices rise, whereas insulin is viewed as a normal good and so demand is steadier.
• D. Because production costs for handbags fluctuate more than for insulin, so handbag demand responds more to price changes while insulin demand remains stable.

Answer: (B)