One reason the demand for electricity is probably more price elastic than the demand for table salt is that
A)people react to a change in the price of electricity in the long run but react to a change in the price of salt in the short run.
B)there are more substitutes for electricity than for table salt.
C)people react to a change in the price of electricity in the short run but react to a change in the price of salt in the long run.
D)a change in the price of electricity is likely to be temporary compared to a change in the price of table salt.
E)electricity takes up a larger proportion of one's income than does table salt.

Question

Quizplus · Accepted Answer

Electricity typically represents a larger portion of a household's budget compared to table salt, making its demand more sensitive to price changes.

One Reason the Demand for Electricity Is Probably More Price