1. Wage earners and salaried class tend to lose dining inflation as their salary fails to keep pace with the rising, prices, second, even thought wages and salaries may eventually rise during inflation, there is a time lage between the price rise and increase in wages and salaries. 

2. To advertise the product, an organisation adapt sales promotion measures which give rise to selling costs. Selling cost is the expenditure incurred by a firm to promote the sale of its product. Thus, selling costs are high in monopolistic competition as there are close substitutes and many rivals. 

3. High rates of taxes reduces the savings capacity as an individual’s ability to work and save is adversely affected. Due to high cost of living, he is unable to save a part of his income. 

4. The demand for newspaper is inelastic. As individuals who are habituel and prefer to read newpaper for hours and hours, will not postpone its use. Thus, it is inelastic for them.