Start learning 50% faster. Sign in now
Get Started with ixamBee
Start learning 50% faster. Sign in nowThe extent of responsiveness of demand with change in the price is not always the same. The demand for a product can be elastic or inelastic, depending on the rate of change in the demand with respect to change in price of a product. Elastic demand is the one when the response of demand is greater with a small proportionate change in the price. On the other hand, inelastic demand is the one when there is relatively a less change in the demand with a greater change in the price. Therefore, the demand for commodities having a large number of close substitutes is more elastic than the commodities having a smaller number of substitutes because whenever there is a change in prices of commodities having close substitutes there will be drastic change in the demand of that commodity. Hence, statement 1 is incorrect. Luxury items Luxury items have a highly elastic demand. Since these items are not necessity therefore, change in prices of these items lead to drastic change in the demands of these items. Hence, statement 2 is correct. The commodities whose consumption cannot easily be postponed have less elastic demand. Since these commodities belong to the necessity class of goods e.g., flour, salt, sugar etc. Therefore, irrespective of change in prices of these goods, demand of these commodities does not get affected too much. Hence, statement 3 is correct. Therefore, B is the right answer.
Which of the following crop is high salt tolerant?
The relationship between two organisms, where both of them benefit from each other is called:
In cotton farming terminology, what does "Seed cotton" consist of?
The Cosmopolite channels are the one which originate outside a particular social system, Examples of this channel includes
Which of the following property of soil is not influenced by tillage operations?
Where is the ICAR-Central Institute for Arid Horticulture located?
Agranal chloroplasts are found in _____
Which type of allelopathy affects plants growing in succession from the decaying residue of previous plants?
The Scheme for promotion of Hybrid Seeds aims to increase the income of which category of farmers?
The branch of Horticulture that deals with the cultivation of vegetables is called