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MAY 2025Foundation

Which of the following statement is not true while determining price elasticity of demand?

A

(A) Goods which have close or perfect substitutes, have highly elastic demand curves.

B

(B) The greater the proportion of income spent on a commodity; generally the lesser will be its elasticity of demand.

C

(C) Necessities are generally price inelastic.

D

(D) The more possible uses of a commodity, greater will be its price elasticity.

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