Question

    The total outlay on commodity remains constant, even when there is a change in price,  this occurs in case of:

    A Unit elasticity Correct Answer Incorrect Answer
    B Perfect elasticity Correct Answer Incorrect Answer
    C Inelastic Correct Answer Incorrect Answer
    D Relatively elastic Correct Answer Incorrect Answer

    Solution

    If a price change for a product doesn't lead to much, if any, change in its supply or demand, it is considered inelastic. 

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