Question

If elasticity of demand is very low it shows that the commodity is

Answer 1

Thank you for this important question.

Elasticity of Demand is the degree of responsiveness of the demand of the good with the price of the good. Remembering, that other factors remain unchanged. 

If the elasticity of demand is very low it indicates that the good/commodity is a necessity.  

This is so because the demand of the good isn't really effected by the change in prices

Answer 2

Answer:

The commodity is a necessity if the elasticity of demand is low.

Explanation:

When the elasticity of demand is very low, the commodity is a necessity since that commodity has a little importance to the total budget.

This therefore means that elasticityof demand is affected by the type of commodity available in the business.