Question

Study the responsiveness of demand for commodities like salt matchboxes candle television food grains with respect to income level of five families introduction

Answer 1

Many things are required in our daily life. Some of those are necessities and other is considered as luxury.

The demands for the necessary goods (i.e. salt, food grains, matchboxes, and candle) are inelastic as the consumption does not change with a change in price.

On the other hand, demand for luxury items i.e. television changes with the change in price and is elastic by its nature.

Answer 2

Products such as salt, matchboxes , television and food grains have different demand in different families.

Products like food grains , matchboxes and salt have the same demand in all the families .

This shows that needs are in order

We satisfy primary needs first before satisfying secondary needs such as entertainment in buy television