State with reasons , whether the following items will have elastic or inelastic demand: (i) Matchbox,(ii) coke , (iii) medicines, (iv) NCERTTextbook, (v) Electricity, (vi) Cigarettes,(vii) Butter for a poor person .

State with reasons , whether the following items will have elastic or

1.	State with reasons , whether the following items will have elastic or inelastic demand: (i) Matchbox,(ii) coke , (iii) medicines, (iv) NCERTTextbook, (v) Electricity, (vi) Cigarettes,(vii) Butter for a poor person .
Answer» SOLUTION :(i) Matchbox has inelastic demand as CONSUMER has to spend a very small PROPORTION of his income. (ii) Coke has elastic demand as it has number of substitutes. (iii) Medicines have inelastic demand as their consumption cannot be postponed. (iv) NCERT Textbook has inelastic demand as it is a necessity item. (v) Electricity has elastic demand a it can be put to several uses. (vi) CIGARETTES have inelatic deamnd as its consumers are HABITUATED. (vii) Butter for a poor person has elastic demand as it is a luxury item for the poor person.