Question

Responsiveness demand commodity like salt matchbox candles television and foodgrain with respect to income level of five family introduction

Answer 1

The elasticity of demand is also know as the responsiveness of demand. Here,the elasticity will be different for all these commodities

- In case of commodities like salt, the demand will be inelastic. This is because salt is a basic necessity and no matter what the price, people will buy it

- In case of Matchboxes and candles too, the demand will be inelastic because these are commodities whose price is negligible to the individuals (assuming they are well off enough to be able to afford it in the first place)

-Foodgrain and television's consumption and demand will be income elastic and the demand will be higher when price is lower and vice versa (AS PER LAW OF DEMAND)