Question

Give reason "Demand for goods having snob appeal is inelastic demand".

Answer 1

Inelastic demands mean that when the price of a product/good is increased, the demand for the good/product is little to not affected.

For example, when the price of a certain jewelry is increased, you would expect the demand to decrease.

However, due to the snob appeal, people who see that product/good as beneficial for their social or intellectual status, the demand for the jewelry will not be affected even though the price has increased.

Answer 2

inelastic demand is  that Demand whose percentage change is less than a percentage change in price.

in other words we can say that

Inelastic demands mean that when the price of a product/good is increased, the demand for the good/product is little to not affected.

For example, if the price of a commodity rises twenty-five percent and demand decreases by only two percent, demand is said to be inelastic.

another example of inelastic demand is that when the price of a certain jewelry is increased, you would expect the demand to decrease.