Answer to Question #298782 in Macroeconomics for Eco

Question

Why does the quantity of salt demand tend to be unresponsive to changes in its price?

Answer 1

Salt is unresponsive to changes in prices because of its inelastic demand. Inelastic demand, the demanded quantity does not affect price change. Salt is seen as an inelastic demand or unresponsive to price changes because it lacks a close substitute. Moreover, salt is a necessity and not a luxury. It is needed in everyday life in cooking; therefore, demand won't change regardless of price changes.