How would the demand curve (with respect to price) of the following commodities look like and why? Draw suitable diagrams to explain.Life saving drugs, Safety pins, Designer watches ,Beedi, Readymade apparels.
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The demand curve for the above conditions like Life saving drugs, Safety pins, Designer watches ,Beedi, Readymade apparels is an steeper demand curve and it would be inelastic and however it will not change much with respect the price and commodity.
- Safety pins: It is very low proportion to spend income on it. The demand on safety pins will effect in inelastic demand.
- Designer watches: To moderate the inelastic goods in the given design watches will be demanded by upper middle class people on the consumption with money come to the play much.
- Cigarettes: People who was habituated will be necessity with close substitute which is available on it. So if the prices increases it could be no matter.
- Life-saving drugs: The price may decrease or increase with an effect for buying detection which is an Highly inelastic to the purchased needed.
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The demand for all the 4 commodities mentioned in the question (safety pins, designer watches, life-saving drugs and cigarettes) is most likely to be inelastic and therefore would lead to a somewhat steeper demand curve that is, quantity demanded would not change much with respect to a change in the price of the commodity. The demand would be inelastic because price change would not affect it.
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