The demand for common salt has low price elasticity because _________.

it has no close substitute

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it is necessity

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it constitutes only a small proportion of consumer's expenditure

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all of the above

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Solution

The correct option is D all of the above
Price elasticity of goods will be low when there are no close substitutes in the market, when the good is a necessity or when it constitutes only a small fraction of consumers expenditure.
Hence, D is the correct option.

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The demand for common salt has low price elasticity because _________.

The correct option is D all of the abovePrice elasticity of goods will be low when there are no close substitutes in the market, when the good is a necessity or when it constitutes only a small fraction of consumers expenditure. Hence, D is the correct option.

The correct option is D all of the above
Price elasticity of goods will be low when there are no close substitutes in the market, when the good is a necessity or when it constitutes only a small fraction of consumers expenditure.
Hence, D is the correct option.