PRC-3 · Chapter 11 · Question 43 of 57
Which of the following products is likely to have the lowest price elasticity of demand?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Salt
Explanation
Salt is a basic necessity with practically no close substitutes and takes up a tiny fraction of a consumer's income, making its demand highly inelastic.
More Elasticity of Demand and Supply MCQs
- Q45If a geometric supply schedule has a price elasticity of supply exactly equal to 1 at all points, its graph will be:
- Q46The elasticity of supply for highly perishable agricultural goods (like fresh milk or ripe strawberries) on market day is generally:
- Q47Because durable manufactured goods (like televisions) can be easily stored in warehouses without spoiling while waiting for prices to…
- Q48What specific term describes the measurement of how sensitive the demand for a good is to a change in the consumers' money income?
- Q49If the price of a specific good falls, and as a direct result, the total expenditure by consumers on that good also falls, the demand for…