A good having close substitute will have an elastic demand and good with no close substitute will have an inelastic demand.
For eg commodities such as pen,cold drink,car,soap etc have close substitute when price of these commodities rises and their substitute price remains constant the quantity demand for these commodities fall.That is their demand is elastic.
Commodities such as salt prescribed medicines,salt, electricity,water etc are not price sensitive they donot have close substitute.These goods are mostly necessities hence have an inelastic demand.
For eg commodities such as pen,cold drink,car,soap etc have close substitute when price of these commodities rises and their substitute price remains constant the quantity demand for these commodities fall.That is their demand is elastic.
Commodities such as salt prescribed medicines,salt, electricity,water etc are not price sensitive they donot have close substitute.These goods are mostly necessities hence have an inelastic demand.
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