Question

Select the commodities from the following which have inelastic demand:

Options

• Car

• Textbooks

• Cigarettes

• Diamonds

• Milk

• Coal

• Coke

Answer 1

Textbooks and Cigarettes

Explanation:

• Textbooks: Often considered a necessity for students, textbooks have inelastic demand because students will still need to buy them regardless of price changes.
• Cigarettes: As an addictive product, the demand for cigarettes is relatively inelastic; price changes do not significantly affect the quantity demanded.