Q4. Given rs fifty thousand , explain in words, which goods having elastic demand, inelastic demand and unit elastic demand would you purchase with this amount. Now think about the procedures of these goods. To increase their revenue. Explain in words, should they increase or decrease the price of their products?
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If the quantity demanded of a product exhibits a large change in response to changes in its price, it is termed "elastic," that is, quantity stretched far from its prior point. ... The more discretionary a purchase is, the more its quantity will fall in response to price rises, that is, the higher the elasticity.
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