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Q.

The elasticity for the demand of durable goods is ______.

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a

Zero

b

Equal to unity

c

Greater than unity

d

Less than unity

answer is C.

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Detailed Solution

A durable goods is a good that does not quickly wear out, Ex: Cars, refrigerators etc. so in this case, price elasticity of demand is greater than unity.

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The elasticity for the demand of durable goods is ______.