Identify which among the following factors generally keeps the price-elasticity of demand for a good low?

Variety of uses for that good.

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Its low price.

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Many close substitutes for the good.

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Large part of consumer's income is spent on the good.

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Solution

The correct option is D Large part of consumer's income is spent on the good.
Generally very low price good have low price elasticity and varieties of uses, close substitute and higher proportion of consumer's income have moreelasticity.
Hence, the correct option is A.

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A consumer buys 18 units of a good at a price of Rs. 9 per unit. The price elasticity of demand for the good is (-) 1. How many units will the consumer buy at a price of Rs. 10 per unit ?

Q. A consumer buys

30

units of a good at a price of

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per unit. Price elasticity of demand for the good is

(-) 1

. How many units the consumer will buy at a price of

R s . 9

per unit? Calculate.

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Identify which among the following factors generally keeps the price-elasticity of demand for a good low?

The correct option is D Large part of consumer's income is spent on the good.Generally very low price good have low price elasticity and varieties of uses, close substitute and higher proportion of consumer's income have moreelasticity.Hence, the correct option is A.

The correct option is D Large part of consumer's income is spent on the good.
Generally very low price good have low price elasticity and varieties of uses, close substitute and higher proportion of consumer's income have moreelasticity.
Hence, the correct option is A.