ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The elasticity of demand of durable goods is greater than unity. Price elasticity of demand for durable goods is generally more elastic in short run than in long run. That is, quantity demanded is more sensitive to price changes of such durable goods in short run and not so much in the long run.

Detailed explanation-2: -For a luxury or superior good, elasticity of demand is greater than 1.

Detailed explanation-3: -The elasticity of demand for durable goods is greater than unity.

Detailed explanation-4: -If price elasticity is greater than 1, the good is elastic; if less than 1, it is inelastic. If a good’s price elasticity is 0 (no amount of price change produces a change in demand), it is perfectly inelastic.

Detailed explanation-5: -The price-elasticity of demand for durable goods in the short-run differs from than in the long-run because the demand of durable goods is inelastic in short-run as these goods last for a long period and demand for durable goods are comparatively elastic in the long run.