Question : What is the elasticity of demand in the case of "Salt"?
Option 1: Elastic
Option 2: Inelastic
Option 3: Unit elastic
Option 4: Perfectly inelastic
Correct Answer: Inelastic
Solution : Due to the lack of salt alternatives, the demand for salt is price inelastic. Like surgery, there are no effective alternatives. People don't pay much attention to price changes when the portion of income spent on a good is low. Demand is hence price inelastic. Hence option b is the correct answer.
Question : If the price elasticity of demand for a good is greater than 1, the demand is:
Option 1: Elastic.
Option 2: Inelastic.
Option 3: Unit elastic.
Option 4: Perfectly inelastic.
Question : If the price elasticity of demand for a good is less than 1, the demand is:
Option 4: Perfectly elastic.
Question : If the price elasticity of demand for a good is zero, it means the demand is:
Question : When the price elasticity of demand is less than 1, the demand is:
Option 1: Inelastic
Option 2: Unitary elastic
Option 3: Perfectly elastic
Option 4: Elastic
Question : When the price elasticity of demand is greater than 1, the demand is:
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