Question

Salt: Necessary good:: Diamonds :________ .complete correlation ​

Answer 1

Answer:

The demand of salt is therefore price-inelastic. Elasticity is often measured in percents. If a 2% increase in price causes people to buy 1% fewer of a product, it has a price elasticity of demand of -0.5.

Answer 2

Answer:

Salt: Necessary good:: Diamonds :Luxury Goods

Explanation:

In the question, we have been asked to develop a correlation between the given words.

Salt: Necessary good:: Diamonds :________

So We have to find out that just like salt is related to the necessary goods, What is diamond related to?

Salt is something that we use in our daily life. That is why it is categorized as a necessary good. But diamonds are something we buy only if we have a large sum of extra money or a very special occasion so it can be termed as a luxury good.

Salt: Necessary good:: Diamonds :Luxury Goods