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Question
Study the statement given below and state whether demand will be elastic or inelastic, citing reasons for your answer.
Demand for cigarettes by a habitual smoker.
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Solution
It is inelastic because a chain smoker or someone who has a habit of smoking cigarettes cannot lessen their use even if the price rises.
RELATED QUESTIONS
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| Price in ₹ | Total outlay ₹ |
| 5 | 25 |
| 3 | 18 |
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