Give reason "Demand for the commodity having multiple uses is elastic demand".
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When a commodity can be put toseveral uses it will have elastic demand because when price fall it will be demanded for less, important purpose so it will have elastic demand
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Demand for the commodity having multiple uses is elastic demand because the demand for a particular commodity which can be used in a variety of ways will be more affected by the changes in price.
* A commodity is said to have elastic demand if it is sensitive to the changes in price. The higher the change, the higher is the elasticity.
* A commodity having a single use or a number of substitutes will have less elasticity in demand due to the same reason.
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