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Elasticity is greater than Unity for
Necessities
complementary goods
luxury
comforts
- Necessities: These goods are essential for survival, like food and water. They usually have inelastic demand, less than one. People buy them regardless of price changes.
- Complementary Goods: These are used together, like bread and butter. A change in the price of one affects the other, but not significantly, having elasticity less than one.
- Luxury Goods: These are non-essential items, like expensive watches and cars. Their demand is more sensitive to price changes, giving them elasticity greater than one.
- Comforts: These are desired for relaxation and convenience, like furniture. Their elasticity varies but is generally less than luxury items.
By: Parvesh Mehta ProfileResourcesReport error
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