Most People Buy Salt Infrequently and in Small Quantities

question 217

Multiple Choice

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).

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Definitions:

Legal Minimum

The lowest amount, mandated by law, that can be paid to workers or charged as a price.

Supply And Demand

The fundamental economic model that explains how prices are determined in the market based on the quantity of a good or service available and the desire of buyers for it.

Minimum-wage Laws

A law defining the minimum hourly compensation that employers are required to pay their workers.

Unemployment

The situation where individuals who are able and willing to work cannot find employment.