00:06
We've been talking about demand and the law of demand that has told us when the price of a good goes up, the quantity demanded goes down and that when the price of a good starts to fall or decreases, there's going to be an increased demand for this good and that they have this inverse relationship.
00:52
But is this always the case when the price goes up? does the quantity demanded always go down? can we think of exceptions to this? this will come up further in other chapters of the book, but broadly speaking, we can think of examples where the quantity demanded of goods is less price sensitive.
01:46
Or we should say less price sensitive.
01:49
Completely price insensitive.
01:53
And these can be things kind of like necessities or things that have no substitutes.
02:23
For example, we can think about medications.
02:27
If i'm ill and i need a medication, if the price increases, quantity demanded won't increase, won't decrease, sorry, as much.
02:55
Or other necessities such as, bread.
03:06
If we eat bread daily, even if the price increases, our quantity demanded probably still won't change...