Most people buy salt infrequently and in small quantities.Even a doubling of the price of salt is likely to result in a small decline in the quantity of salt demanded.Therefore
A)the demand for salt will be perfectly inelastic.
B)salt is a normal good.
C)the demand for salt is relatively inelastic.
D)the price elasticity of demand for salt is greater than 1 (in absolute value).

Question

Quizplus · Accepted Answer

The statement mentions that even a doubling of the price of salt is likely to result in a small decline in the quantity demanded. This indicates that the demand for salt is relatively inelastic. If the demand for a good is inelastic, it means that a change in price will result in a proportionately smaller change in quantity demanded.

Most People Buy Salt Infrequently and in Small Quantities