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Answer to Question #82451 in Microeconomics for afreen khan
Question #82451
5. Which of the following commodities has inelastic demand and why?
a) Soap
b) Salt
c) Cigarettes
d) Ice cream.
a) Soap
b) Salt
c) Cigarettes
d) Ice cream.
Expert's answer
Cigarettes have inelastic demand, because smokers depend on smoking them and can't change the quantity demanded very fast due to the change in price. So, the correct answer is c).
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