SSC MTS EXAM

Detailed explanation-1: -In general, necessities and medical treatments tend to be inelastic, while luxury goods tend to be most elastic.

Detailed explanation-2: -If a price change for a product doesn’t lead to much, if any, change in its supply or demand, it is considered inelastic. Generally, it means that the product is considered to be a necessity or a luxury item for addictive constituents. Examples would be gasoline, milk, and iPhones.

Detailed explanation-3: -When a good or service is a luxury or a comfort good, the demand is highly price-elastic when compared to a necessary good. Conversely, the demand for an essential good, such as food, is generally price-inelastic because consumers still buy food even if the price changes.