In the context of elasticity of demand, which of the following goods is likely to have inelastic demand? MCQ with Answer and Explanation

In the context of elasticity of demand, which of the following goods is likely to have inelastic demand?
A. Air conditioners
B. Luxury cars
C. Salt
D. Jewellery
Answer: Option C
Solution (By JKSSB Mock Tests)
Necessities like salt have inelastic demand because quantity demanded does not change significantly with price changes. Luxuries tend to have elastic demand.

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Practice More Economy Set 1 Questions

Question #1
The 'UNESCO' headquarters is in:
A. Geneva
B. Rome
C. Paris
D. New York

Correct Answer: Option C


Explanation:
UNESCO headquarters is in Paris.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'National Manufacturing Policy' aims to create how many additional jobs?
A. 100 million
B. 500 million
C. 200 million
D. 50 million

Correct Answer: Option A


Explanation:
The National Manufacturing Policy aims to create 100 million additional jobs by 2022.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is NOT a factor affecting the elasticity of demand?
A. Time period under consideration
B. Nature of the commodity (necessity or luxury)
C. Availability of substitutes
D. Cost of production of the commodity

Correct Answer: Option D


Explanation:
Cost of production affects supply, not the elasticity of demand. Elasticity of demand depends on substitutes, nature of the good, income proportion, time, and habits.

This question belongs to: Economy GK Economy Set 1