Multiple Choice
Most people, when asked, cannot name the price of a canister of table salt at the grocery store within a factor of 25 percent. Which elasticity argument explains why?
A) Table salt has many substitutes; demand is highly elastic.
B) Expenditures on table salt make up a tiny fraction of the average person's budget; demand is highly inelastic.
C) Most people make their salt consumption decisions in the short run.
D) People are loyal to their specific brands of salt.
Correct Answer:
Verified
Correct Answer:
Verified
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