Which of the Following Could Explain Why the Demand for Table

question 101

Multiple Choice

Which of the following could explain why the demand for table salt is inelastic?

• A)Salt is a luxury good.
• B)Salt is a rare commodity.
• C)Households devote a very small portion of their income to salt purchases.
• D)Salt is a luxury for high-income consumers but a necessity for low-income consumers.

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Definitions:

Predictor Variable

A variable used in statistics and modeling that forecasts or predicts the outcome of a dependent variable, also known as an independent variable.

Second-order Polynomial

A polynomial of degree two, typically expressed as \(ax^2 + bx + c\), which represents a quadratic function.

First-order Polynomial

A mathematical expression of the form ax + b, where a and b are constants, and x is a variable.

Interaction

The effect that occurs when the impact of one variable on a response variable changes depending on the level of another variable in statistical models.