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Commerce · Q46

Economics

Graduate and Post Graduate · Commerce · question 46

Q46

If elasticity of demand is very low, it shows that the commodity is

A.
A necessity
B.
A luxury
C.
Has little importance in total budget
D.
a' and 'c' above
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
If elasticity of demand is very low, it shows that the commodity is necessity and has little importance in total budget.