ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The supply of perishable good such as bananas is more price ____ than durable goods such as smart phones because of lack of ____ for perishable goods.
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inelastic, good weather
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elastic, good weather
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inelastic, stock
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elastic, stock
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Explanation:
Detailed explanation-1: -The supply of perishable goods cannot be increased or decreased as per will. Therefore, the supply of perishable goods is inelastic in nature.
Detailed explanation-2: -Supply of perishable goods is inelastic because the supply of perishable goods cannot be increased or decreased easily. As a result, change in demand for these goods will not result a change in their supply.
Detailed explanation-3: -In case of perishable goods since these have limited useful life therefore the supply is inelastic i.e. changes in prices does not affect the supply of goods. Was this answer helpful?
Detailed explanation-4: -Demand for perishable goods is inelastic.
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