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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 |
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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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