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What happens to the demand for necessities like salt or electricity when their prices increase?

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Question

What happens to the demand for necessities like salt or electricity when their prices increase?

Options

  • Demand rises sharply

  • Demand falls rapidly

  • Demand stays constant

  • Demand disappears completely

MCQ
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Solution

Demand stays constant

Explanation:

The demand for necessities stays constant regardless of price because these goods have inelastic demand.​

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