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Question
(b) less elastic demand
(c) zero elastic demand
(d) unitary elastic demand
Solution
Demand for habitual commodity has zero elastic demand.
Explanation:
The goods that a consumer is habituated to such as, liquor, cigarettes, etc. have an inelastic demand or zero elastic demand. A change in the prices of these goods has lesser impact on their demand as the consumer is habituated to these goods and hence cannot reduce their consumption.
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