Question

Elasticity of the demand is available when:

Options

• Low priced commodities are available

• Uses of a commodity is less

• Both of the above

• None of the above

Answer 1

None of the above

Explanation:

Elasticity refers to how sensitive demand is to changes in the price of a commodity. Demand increases when the price of the item is low, but because the commodity has fewer uses, demand becomes inelastic.