Question : What is the elasticity of demand in the case of "Salt"?
Option 1: Elastic
Option 2: Inelastic
Option 3: Unit elastic
Option 4: Perfectly inelastic
Answer (1)
19th Jan, 2024
Correct Answer: Inelastic
Solution :
Due to the lack of salt alternatives, the demand for salt is price inelastic. Like surgery, there are no effective alternatives. People don't pay much attention to price changes when the portion of income spent on a good is low. Demand is hence price inelastic.
Hence option b is the correct answer.
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