A grocery store put salt on sale but found that total revenues fell.This can be explained by which of the following?
A)The demand for salt is very elastic.
B)The demand curve for salt is vertical.
C)The demand for salt is inelastic.
D)The demand for salt is unitary elastic.

Question

Quizplus · Accepted Answer

When the demand for a product is inelastic, a decrease in price leads to a smaller percentage increase in quantity demanded, resulting in lower total revenue. Salt is typically considered a necessity with few substitutes, making its demand inelastic.

A Grocery Store Put Salt on Sale but Found That