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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
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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