Can anyone explain this ques

Prathna · 5 Jul 2024

The reason is that when Price of a good is low the consumer does not change more of its demand even if the prices of that good fluctuate a little because a little fluctuation in its price may not effect consumer much. Therefore, the answer if low prices

AMIT · 5 Jul 2024

⇒ Lower the price of the good, the lower is its response to change in prices i.e. lower is the price elasticity. ⇒ Demand of a commodity having very low price will not be effected with price fluctuations. The above explanation is due to the fact that a low priced commodity has a small place in consumer's budget. ∴ The factor which generally keeps the price-elasticity of demand for a good low is its low price. This is what actually google saying and it's better to understand so I sent it to uh... Hope you understand