Question

In the context of Pakistan’s society for each of the following products, indicate the correct type of price elasticity of demand or supply and also justify your answer:

a) An exquisite painting to be sold at an auction

b) Demand for Cancer-treating drug c) Production of gold mining

d) Demand for gold

Answer 1

Explanation:

a. An exquisite painting to be sold at an auction The supply of an exquisite painting tends to be that of inelastic as its supply can not be increased even if the price of this painting increases. From demand point of view