Question

5. If prices of salt and ciggrates, both rises by 10% , will the qt. demanded of both
goods affected in an equal manner?

Answer 1

If prices of salt and cigarettes, both rise by 10% that won't affect the demand for both goods in an equal manner.

1) As you all know that the salt is included in the list of the essential needs, so the demand of the essential items won't differ by the change in the price. People will buy it at this increased cost to fulfill their needs.

2) But cigarettes are not the essential items so after the increase in the price, people will definitely reduce some use of it.