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Question
The elasticity of demand for school bag will be ______.
Options
Elastic
Perfectly elastic
Unitary elastic
Inelastic
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Solution
The elasticity of demand for school bag will be inelastic.
Explanation: For students, school bags are a necessary item, and there aren't many alternatives. Customers are unlikely to significantly change how much they buy in reaction to price changes. As a result, the demand usually becomes inelastic.
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