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Question
If elasticity of demand for salt is zero, and household demands 2 kg. of salt during one month when its price is ₹ 5 per kg., this household will demand the same quantity of salt even if price rises to ₹ 8 per kg.
Options
True
False
Solution
This statement is True.
Explanation:
If the elasticity of demand for salt is zero, the quantity demanded does not change regardless of the price. Therefore, even if the price rises from ₹5 per kg to ₹8 per kg, the household will still demand the same quantity of 2 kg of salt.
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