Possibility of Postponement of Demand- Demand for those commodities whose consumption can be postponed will be price elastic . As against this, those commodities that are urgently required and whose consumption cannot be postponed will have an inelastic demand .
i don't understand this
Dear Saumya,
If the use of a commodity can be postponed then the commodity has higher elasticity because if the use of a commodity can be postponed then it simply means that the commodity is not a necessity to the user, so the change in demand due to change in it's price will be higher. For e.g. consumption of clothing may be postponed , therefore, a rise in it's price may lead to a larger fall in its demand. Hence, the demand for clothing may be elastic. However, the consumption of food items cannot be postponed. Therefore their demand is inelastic.
If the use of a commodity can be postponed then the commodity has higher elasticity because if the use of a commodity can be postponed then it simply means that the commodity is not a necessity to the user, so the change in demand due to change in it's price will be higher. For e.g. consumption of clothing may be postponed , therefore, a rise in it's price may lead to a larger fall in its demand. Hence, the demand for clothing may be elastic. However, the consumption of food items cannot be postponed. Therefore their demand is inelastic.