what would be the nature of elasticity of demand for salt, newspaper and medicines?
-elastic
-less elastic
-unitary elastic
-greater then elastic
Answers
Answer:
Unitary elastic is the answer
Explanation:
Mark brainliest to my answer
Concept: Demand elasticity is a significant modification to the notion of demand. Demand can be categorised as unitary, inelastic, or elastic.
A demand that is elastic experiences a significant shift in quantity demanded as a result of a price adjustment. When the amount sought changes little as a result of a price adjustment, the demand is said to be inelastic.
Given: elastic
-less elastic
-unitary elastic
-greater then elastic
To find: the nature of elasticity of demand for salt, newspaper and medicines
Solution: The reason why the demand for salt is inelastic is because it does not change with changes in price.
The cost of newspapers is not elastic. In other words, a substantial price increase won't always result in a significant decrease in circulation. The market for newspapers is rigid. People who regularly read the newspaper for extended periods of time won't put off using it. It is hence inelastic for them.
Pharmaceuticals appear to be relatively price inelastic according to empirical estimates of price elasticities of demand (PED). The reported "composite" PED is impacted by simultaneous differential price adjustments in numerous contexts between a drug and its alternatives and supplements.
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