The nature of a commodity determines its price elasticity of demand. E – InterviewSolution

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1.	The nature of a commodity determines its price elasticity of demand. Explain.
Answer» Elasticity of demand is the degree of responsiveness of demand for a commodity to change in its price. Generally, necessaries like salt, sugar, seasonal vegetables etc. have less elastic demand whereas luxuries like A.C., T.V., Car, have elastic demand.

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