In general demand for cheap items are while demand for expe

In, general demand for cheap items are _________ while demand for expensive items are ___________.

elastic; inelastic

elastic; elastic

inelastic; inelastic

inelastic; elastic

none of the above

Solution

Option (d).

For cheaper goods, consumers are less price sensitive to higher price, so demand is inelastic. But costlier goods are more sensitive to increase in price, so demand is elastic.