1.

As you know elasticity of demand is influenced by several factors. Observing the nature of good given in the first column, complete the following table. Write whether the demand for the product is elastic or inelastic and also the reason.CommodityDegree of elasticityReasonsCarSoft drinksElectricityRiceLife saving drugs

Answer»

Column 2 – Column 3 

Elastic – luxury product 

Elastic – close substitutes are available 

Elastic – no substitute 

Elastic – Essential good 

Elastic – Essential good



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