Advertisements
Advertisements
Question
From the following state whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
demand for cigar by a chain smoker
One Line Answer
Advertisements
Solution
It is a habitual necessity for the chain smoker. Hence, demand for cigar will be inelastic
shaalaa.com
Is there an error in this question or solution?
