Practicing Success

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:

Inelastic demand of a commodity indicates that a change in price results in relatively less change in quantity demanded. As, medicines are necessities and demand for it cannot be postponed we will say it has an inelastic elasticity of demand.