The elasticity of demand of durable goods is ........

Economics- Phase (I & II) Consumption Function

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The elasticity of demand of durable goods is

Less than unity

Greater than unity

Equal to unity

Zero

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Explanation:

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. Hence option 2nd is correct.