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प्रश्न
State whether demand will be Elastic or Inelastic. Give reasons for your answer.
The demand for salt by households.
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उत्तर
Because households only spend a relatively small percentage of their income on salt, their demand will be inelastic without near alternatives. The consumer will continue to purchase about the same amount of salt even if the price increases because it won't have much of an impact on their budget. As a result, there is no elastic demand for these commodities.
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संबंधित प्रश्न
Explain any two factors that affect the price elasticity of demand. Give suitable examples.
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(i) Number of substitutes
(ii) Nature of the commodity
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Comment upon the shape of the demand curve, if Ed = 0.
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