List 5 goods in order of their elasticity from most elastic

List 5 goods in order of their elasticity from most elastic to most inelastic. Explain as why each good is in the slot you put it in.

Solution

1.Water- perfectly inelastic for it being a necessity

2.Tata salt is less elastic as if its price reduces, its purchase will not hindered as it is a necessity

3. Allwyn refrigerators is very elastic as people will shift to godrej referigerators if the price increases.

4.Purchasing of a car is more elastic as if it gets cheap , more quantity of it will be demanded out of fashion and competition

5. Electricity is perfectly elastic

By,

Nishant Bhatt