Assertion (A): The demand for salt is inelastic.
Reason (R): Salt has many close substitutes.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

A is true: salt is a cheap necessity.
R is false: salt has no close substitute, which is one reason its demand is inelastic.

Concept: Salt and substitutes
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsWhat decides elasticity

Practise this chapter →

Ten questions from Price Elasticity of Demand, at your own pace.

Practise this chapter →

Ten questions from Price Elasticity of Demand, at your own pace.

Practise this chapter All 62 questions in Price Elasticity of Demand Revise the notes for Price Elasticity of Demand

Assertion (A): The demand for salt is inelastic.Reason (R): Salt has many close substitutes.

Explanation

Assertion (A): The demand for salt is inelastic.
Reason (R): Salt has many close substitutes.