What is Price elasticity?

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BeingSkilled
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What is Price elasticity?

Tell me about Price Elasticity

BeingSkilled
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BeingSkilled
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Can  someone pls help with eco 3a?                        
[14:32, 10/29/2016]  Write abt price elasticity of demand                        

What are the essential commodities & non essential ones?                        
[14:44, 10/29/2016]  the ones which have less than 1 are essential and the ones which have PE > 1 are non essentials

HARISH BHAT

I think that "Essential commodities" are ones that have very low elasticity in demand in relation to price (assuming presence of substitutes)
example - rice,wheat ...... substitutes would be jowar, baJra etc,
Is this correct ?

BeingSkilled
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Yes you are correct. doesnt matter if that is rice or wheat - PE should be less than 1.

Gaurav Agrawal

Yes you are correct. doesnt matter if that is rice or wheat - PE should be less than 1.

Gaurav Agrawal

Go by price elasticity. Commodities with low elasticity are essential. Commodities with high price elasticity are non essential.
Bread and potatoes are essential in this case. Cheese, peas and meat are not essential.