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WAEC Economics 2014 Question 18

Question 18

Elasticity

Goods consumed out of habit have

  1. A.elastic demand.
  2. B.perfectly elastic demand.
  3. C.inelastic demand.
  4. D.unitary elastic demand.
Show the answer and explanation

Answer: C (inelastic demand.)

Explanation

Habit-forming goods (e.g. cigarettes) are bought even when prices rise.