Question

The demand cure of necessities is inelastic. The demand cure of Luxuries is elastic.  For both goods, suppose producers produce more and supply becomes double
(at each price, Qs doubles).

For which product will P change the most?

For which product will Q change the most?

 ​

Answer 1

Explanation:

There is a huge difference between necessities and luxurious products. Necessities are used by everyone in the society while luxurious items are required by few people in the society. That is why demand curve of necessities remain inelastic as public has to use them. So when the production of necessities are doubled, then its prices will come down unlike luxurious items, whose demand is already elastic