Maharashtra State BoardHSC Commerce 12th Board Exam
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Give Reasons Or Explain the Following Statement Demand for Habitually Used Goods in Inelastic. - Economics

Give reason or Explain the following statement :

Demand for habitually used goods is inelastic.

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Solution

The goods that a consumer is habituated to such as, liquor, cigarettes, etc. have an inelastic demand. A change in the prices of these goods has a lesser impact on their demand as the consumer is habituated to these goods and hence cannot reduce their consumption.

Concept: Demand
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