![]() ![]() ![]() They cost a small % of income or are bought infrequently.if you have a car, you need to keep buying petrol, even if price of petrol increases They have few or no close substitutes, e.g.Goods which are inelastic tend to have some or all of the following features: Inelastic demand PED These are goods where a change in price leads to a smaller % change in demand therefore PED <1 e.g. ![]() if Sainsbury’s put up the price of its bread there are many alternatives, so people would be price sensitive. Goods with many substitutes and a very competitive market.They are expensive and a big % of income e.g.Goods which are elastic, tend to have some or all of the following characteristics. ![]()
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