Question

When the demand of a commodity is inelastic.

Options

• The commodity has various uses

• Demand remains constant with variable price

• Commodity has few uses

• Commodity has no uses at all

Answer 1

The commodity has few uses

Explanation:

When we discuss inelastic versus perfect inelastic, there is a distinction to be made. When a commodity has a limited number of applications, its demand is inelastic since prices are lower. As a result, demand rises, but only little because the commodity has a limited number of uses.