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Choose the Correct Answer : the Demand of a Salt is _________. - Economics

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Question

Choose the correct answer :             

The demand of a salt is _________. 

Options

  • (a) Inelastic

  • (b) Elastic

  • (c) Elasticity more than one

  • (d) Elasticity less than one

MCQ
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Solution

The demand of a salt is inelastic.
Explanation:
Salt has inelastic demand. This is because salt has no close substitutes and makes up a very small amount of the household budget. Due to this, a change in prices of salt has a little or no impact on its quantity demanded.

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2009-2010 (October)

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