ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -China and glassware are most likely to be the most price elastic. The price elasticity of demand measures the demand for goods concerning the price. China and glassware have many substitutes in the market, and consumers will get attracted to those goods which are less expensive.

Detailed explanation-2: -The most common goods with inelastic demand are utilities, prescription drugs, and tobacco products. In general, necessities and medical treatments tend to be inelastic, while luxury goods tend to be most elastic.

Detailed explanation-3: -The top half of the curve is elastic, because if the prices rises-at any point above the midpoint-expenditure decreases due to a large quantity fall. Therefore, the easiest way to determine an elastic demand curve is to extend the section of the demand curve drawn and identify which axis it intersects.

Detailed explanation-4: -Soft Drinks. Soft drinks aren’t a necessity, so a big increase in price would cause people to stop buying them or look for other brands. Cereal. Like soft drinks, cereal isn’t a necessity and there are plenty of different choices. Clothing. Electronics. Cars.