ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The demand of wheat is inelastic because the consumer responsiveness is small when there is a decrease in the price of wheat . Wheat can also be viewed as normal good.

Detailed explanation-2: -Wheat flour contains 6 to 12 percent gluten, enough to provide a gluten network that holds the carbohydrates together. This dough is elastic and stretchy, but not as strong and tough as the gluten dough.

Detailed explanation-3: -Since the PES for wheat is less than 1, it implies that any change in the P of wheat will cause a very negligible change in the QS of wheat. Hence, the supply of wheat is price inelastic.

Detailed explanation-4: -An inelastic demand or supply curve is one where a given percentage change in price will cause a smaller percentage change in quantity demanded or supplied. Unitary elasticity means that a given percentage change in price leads to an equal percentage change in quantity demanded or supplied.