How does the nature of a commodity influence its price elastictiy of d

1.	How does the nature of a commodity influence its price elastictiy of demand?
Answer» Solution :The elasticity of DEMAND for a good depends upon the nature of the good, i.e., WHETHER the good is a necessary or a luxury good. The elasticity of demand for a necessary good is relatively SMALL. For example, if the price of such a good rises, its buyers GENERALLY are not able to reduce its demand.

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