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:

Consumer Credit

A type of credit granted to individuals to purchase goods and services, often used for transactions not involving a business.

Personal Defense

Legal strategies or justifications used by an individual to excuse or justify their actions in a civil or criminal legal case.

Holder In Due Course

A person who has acquired a negotiable instrument in good faith and for value, and thus has certain rights above the original parties to the instrument.

Restrictive Indorsement

A limitation placed on the transfer of a negotiable instrument, such as a check, which specifies the conditions under which it can be further negotiated.