Question

if a consumer has strong preference for a commodity what will be the nature of price elasticity of demand?​

Answer 1

Answer:

Its obviously that if a consumer has a strong preference for a commodity then the nature of price will be high and elasticity of demand will slowly get decrease because of high price .

Answer 2

If consumer has strong preference or addiction towards a particular good the good will be considered as necessity. Thus an increase in price of the good causes less than proportionate change or response in quantity demanded as consumer is less likely to cut back on the consumption of the good that is considered as a necessity for them. As a result the demand of the good will be price inelastic.