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Question : When the percentage change in demand for a commodity is less than the percentage change in its price then demand is said to be

Option 1: highly elastic

Option 2: inelastic

Option 3: relatively elastic

Option 4: perfectly inelastic


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: inelastic


Solution : The correct option is inelastic.

A commodity is said to have inelastic demand when the percentage change in quantity sought is considerably less responsive to the percentage change in price. This demonstrates that buyers are not responsive to price changes, as their needs do not change regardless of whether the price increases or decreases.

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