Which of the following could explain why the demand for table salt is inelastic?
A) Salt is a luxury for high-income consumers but a necessity for low-income consumers.
B) Salt is a rare commodity.
C) Salt is a luxury good.
D) Households devote a very small portion of their income to salt purchases.
D
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Managers can increase firm profits by:
A) increasing revenue only. B) decreasing costs only. C) increasing revenue and decreasing costs. D) none of the above.
Which of the following is included in GDP?
a. life expectancy b. literacy c. health d. infant mortality
If a firm refuses to hire any minorities due to a personal prejudice, its profits will
a. not be affected. b. increase slightly. c. increase markedly. d. decrease.
Which of the following is an example of the free-rider problem?
A. a fast food employee who is provided food at work B. a student who refuses to buy a college catalog C. a neighbor who refuses to help pay for a street light that is intended to help reduce crime D. a law enforcement officer who receives a uniform from the police department