Give reasons or explain the following statements:
4. Demand for commodity having multiple uses has elastic demand.
Answer: A commodity that can be used for different purposes (such as milk) will have an elastic demand. This is because if the price of this commodity increases, it will be used only for important purposes leading to a drastic fall in demand.
4. Demand for commodity having multiple uses has elastic demand.
Answer: A commodity that can be used for different purposes (such as milk) will have an elastic demand. This is because if the price of this commodity increases, it will be used only for important purposes leading to a drastic fall in demand.
