The demand for salt is
a. inelastic because there are few substitutes for salt and it represents a large percentage of a consumer's budget.
b. inelastic because there are many substitutes for salt and it represents a large percentage of a consumer's budget.
c. inelastic because there are few substitutes for salt and it represents a small percentage of a consumer's budget.
d. elastic because there are no substitutes for salt and it represents a large percentage of a consumer's budget.
e. elastic because there are many substitutes for salt and it represents a large percentage of a consumer's budget.
C
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For much of the history of aid, ____________ has been a driving force in decisions about how much to give in foreign aid.
A. the finance gap of receiving countries B. the opportunity cost of investing in developing nations C. the interest rate in the home country D. political strategy
Closely watched indicators such as the inflation rate and unemployment are released each month by the
a. Bureau of the Budget. b. Bureau of Labor Statistics. c. Department of the Treasury. d. President's Council of Economic Advisors.
First-differenced estimation in a panel data analysis is subject to serious biases if _____.
A. key explanatory variables vary significantly over time B. the explanatory variables do not change by the same unit in each time period C. one or more of the explanatory variables are measured incorrectly D. the regression model exhibits homoscedasticity
If a good is not produced, then there is no demand for it
Indicate whether the statement is true or false