Habit Forming Commodities Assignment Help

Assignment Help: >> Determinants of Price Elasticity of Demand - Habit Forming Commodities

Habit Forming Commodities:

Some commodities are habit forming while others are not. For habit forming commodities, they tend to have less elastic or inelastic demand because once the habit is formed it is a bit difficult to break away from it when the price of the commodity increases wven significantly. For instance, one the habit of smoking cigarettes is formed, it is difficult to break away when the price of cigarettes rise. Non-habit forming commodities tend to have moreelastic demand.

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