ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The demand for necessities or necessary goods is inelastic because whatever may be the changes in the price of these goods, their demand does not change drastically.

Detailed explanation-2: -Electricity is inelastic because it does not have any close substitutes. For examples, petrol and salt. Firms with monopoly power will face an inelastic demand curve.

Detailed explanation-3: -The demand for necessities is inelastic. By inelastic demand we mean that as the price of the commodity changes the quantity demand does not change. The consumer will not buy lesser of the commodity of the price increases.

Detailed explanation-4: -Electricity demand in all sectors is highly price and income inelastic in the short run.

Detailed explanation-5: -An inelastic demand is one in which the change in quantity demanded due to a change in price is small. If the formula creates an absolute value greater than 1, the demand is elastic. In other words, quantity changes faster than price. If the value is less than 1, demand is inelastic.