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Question
The elasticity of demand for a product will not be higher ______.
Options
When it is considered a necessity by its buyers
When more substitutes for the product are available
When it has several uses
When it is an expensive commodity
MCQ
Fill in the Blanks
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Solution
The elasticity of demand for a product will not be higher when it is considered a necessity by its buyers.
Explanation:
Necessities tend to have inelastic demand, so buyers change their purchases little when price changes. More substitutes, multiple uses, and a high price generally make demand more elastic.
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