Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

What elasticity does "Medicines" carry?

Options:

Inelastic

Elastic

Unitary elastic

Either 1 or 2 

Correct Answer:

Inelastic

Explanation:

the correct answer is Option 1: Inelastic

Inelastic demand of a commodity indicates that a change in price results in relatively less change in quantity demanded.
Medicines have inelastic demand.
This means that changes in price have a relatively small effect on the quantity demanded because medicines are often considered necessities. People will generally continue to purchase them even if prices increase, as they are essential for health and well-being.