Question

Q3.Why Different goods have different price elasticities?
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Answer 1

Answer:

There are various reasons why different goods have different price elasticity of demand. ... This means change in price will not have much effect on quantity demand. These goods are inelastic goods. Secondly, some goods are luxuries such as cars where there is availability of many substitutes in the market.

Answer 2

Answer:

There are various reasons why different goods have different price elasticity of demand. ... This means change in price will not have much effect on quantity demand. These goods are inelastic goods. Secondly, some goods are luxuries such as cars where there is availability of many substitutes in the market.