Discussion
Which one of the following products has highly inelastic demand ?
Answer: C
The product with highly inelastic demand is Salt.
Salt is a necessity with no close substitute, and it takes a tiny share of household income. Even a large rise in its price hardly changes how much people buy, so its demand is highly inelastic.
Jewellery, television sets and sports cars are luxuries or durables whose purchase can be postponed or given up, so their demand is relatively elastic.
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