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» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :(i) Matchbox has inelastic demand as <a href="https://interviewquestions.tuteehub.com/tag/consumer-25599" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMER">CONSUMER</a> has to spend a very small <a href="https://interviewquestions.tuteehub.com/tag/proportion-1170266" style="font-weight:bold;" target="_blank" title="Click to know more about PROPORTION">PROPORTION</a> of his income. <br/> (ii) Coke has elastic demand as it has number of substitutes. <br/> (iii) Medicines have inelastic demand as their consumption cannot be postponed. <br/> (iv) NCERT Textbook has inelastic demand as it is a necessity item. <br/> (v) Electricity has elastic demand a it can be put to several uses.<br/> (vi) <a href="https://interviewquestions.tuteehub.com/tag/cigarettes-916462" style="font-weight:bold;" target="_blank" title="Click to know more about CIGARETTES">CIGARETTES</a> have inelatic deamnd as its consumers are <a href="https://interviewquestions.tuteehub.com/tag/habituated-7686732" style="font-weight:bold;" target="_blank" title="Click to know more about HABITUATED">HABITUATED</a>. <br/> (vii) Butter for a poor person has elastic demand as it is a luxury item for the poor person.</body></html>


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