The demand for salt is relatively price inelastic, while the demand for pretzels

Question

The demand for salt is relatively price inelastic, while the demand for pretzels is relatively price elastic. Which of the following is a valid explanation for this?  (Choose all that apply.)

There are many good substitutes for salt (pepper, condiments) and there are few substitutes for pretzels.

There are few good substitutes for salt, and there are many good substitutes for pretzels (chips, other snacks).

In general, the price is more important in deciding whether to purchase salt than it is in deciding whether to purchase pretzels.

Salt is more of a luxury item than pretzels.

There are many good substitutes for salt (pepper, condiments) and there are few substitutes for pretzels.

There are few good substitutes for salt, and there are many good substitutes for pretzels (chips, other snacks).

In general, the price is more important in deciding whether to purchase salt than it is in deciding whether to purchase pretzels.

Salt is more of a luxury item than pretzels.

Explanation / Answer

Answer is B. There are few good substitutes for salt and there are many good substitutes for Pretzels (chips, other snacks).

Explanation:

The product having large number of substitute available are having high elastic demand because, as the price increases the consumer will easily move to the consumption of other close substitute goods.

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