ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The demand for salt is inelastic because irrespective of the change in price, the demand for salt remains the same. Inelastic demand is usually seen for necessary goods like salt, sugar, milk etc.

Detailed explanation-2: -The demand for salt is inelastic because the demand for salt remains constant regardless of price changes. Inelastic demand is most commonly found for essential products such as salt, sugar, and milk. Hence option A is correct.

Detailed explanation-3: -The most common goods with inelastic demand are utilities, prescription drugs, and tobacco products. In general, necessities and medical treatments tend to be inelastic, while luxury goods tend to be most elastic.

Detailed explanation-4: -Examples of goods with inelastic demand include gasoline, necessary foods, and prescription drugs. When price changes on these items, demand doesn’t fluctuate much because these items are required in the everyday lives of most consumers.

Detailed explanation-5: -What Is Inelastic Demand? “Inelastic” is an economic term referring to the static quantity of a good or service when its price changes. Inelastic demand means that when the price goes up, consumers’ buying habits stay about the same, and when the price goes down, consumers’ buying habits also remain unchanged.