Help me to solve Q no.6 ii.)
Dear student,
Salt is relatively inelastic because it is a necessary commodity and it is consumed on daily basis, and also it's demand does not fluctuate with change in it's price . Also if fluctuations happens then also same quantity is being demanded.
Gold is relatively more elastic because it's a luxury commodity and it's demand is very much sensitive to change in it's price.It is more elastic for middle class people who gets affected by it's price and less elastic for people who belongs to high class or from rich communities as they can afford it whenever they want.
Hope it helps.
Regards
Salt is relatively inelastic because it is a necessary commodity and it is consumed on daily basis, and also it's demand does not fluctuate with change in it's price . Also if fluctuations happens then also same quantity is being demanded.
Gold is relatively more elastic because it's a luxury commodity and it's demand is very much sensitive to change in it's price.It is more elastic for middle class people who gets affected by it's price and less elastic for people who belongs to high class or from rich communities as they can afford it whenever they want.
Hope it helps.
Regards