Question

Is the demand for the following commodities elastic or inelastic?

1. Salt
2. Foodgrains
3. Petrol
4. Needles
5. Green vegetables
6. Four Square cigarettes
7. Water

Answer 1

Inelastic Demand:

1. Salt: Salt is a necessity with no close substitutes, so the quantity demanded remains unchanged even if the price changes.
2. Foodgrains: Basic foodgrains are essential for survival, so demand remains relatively stable despite price changes.
3. Petrol: Petrol is necessary for transportation, especially in areas with limited public transport options. While demand might decrease slightly with higher prices, it generally remains stable.
4. Needles: Needles are essential for specific tasks and typically have no close substitutes, making their demand inelastic.
5. Four Square cigarettes: Cigarettes, especially specific brands like Four Square, have inelastic demand due to addiction. Consumers are less sensitive to price changes.
6. Water: Water is essential for life, so demand is highly inelastic. Even with price changes, the quantity demanded remains largely the same.

Elastic Demand:

1. Green Vegetables: Green vegetables generally have elastic demand because there are many substitutes (other vegetables or foods), and consumers can switch to alternatives if prices rise.