The price elasticity of demand measures the sensitivity of the quantity demanded to changes in the price. Demand is inelastic if it does not respond much to price changes, and elastic if demand changes a lot when the price changes. ... Elasticity is greater when the market is defined more narrowly: food vs. ice cream.

Elasticity of Demand

Elasticity of demand is the degree of responsiveness of the quantity of a commodity demanded to a change in its price. Elastic demand is when a small change in price leads to a significant change in demand. Inelastic demand is when a change in price has little or no effect on demand.

Factors Affecting Elasticity of Demand

There are several factors that influence the elasticity of demand for a commodity, such as:

- Availability of substitutes
- Proportion of income spent on the commodity
- Necessity of the commodity
- Time period considered

Elastic Demand for Fruits

Fruits are a commodity that has elastic demand. This is because there are many substitutes for fruits available in the market, such as other fruits, vegetables, and snacks. Therefore, a small increase in the price of a particular fruit will lead to consumers switching to other fruits or snacks, reducing the demand for the expensive fruit. Additionally, fruits are not a necessity, and their consumption depends on the income of the consumer, making it a discretionary expense.

Conclusion

In conclusion, fruits have elastic demand due to the availability of substitutes and their discretionary nature. On the other hand, commodities such as salt, school uniform, and medicine have inelastic demand as they are necessities and have no or limited substitutes available.

Yes bcoz if price of food increases than we less demand for it therefor it is elastic