If the price of a necessity, like insulin for diabetics, increases by 10% and the quantity demanded decreases by only 2%, how would we classify the demand for this product?

The demand for insulin in this case would be classified as inelastic. This means that even though the price of insulin increased by 10%, the quantity demanded only decreased by 2%. Inelastic demand shows that consumers still need the product, so they are less sensitive to price changes. For example, if a diabetic person needs insulin to manage their health, they will likely continue to buy it even if the price goes up. This demonstrates that for necessities, people often prioritize their needs over the cost.