Question

Study the responsiveness of demand for commodities like salt matchbox conclusion

Answer 1

Heya...

Demand study according to price it's called price elasticity...

Demand elasticity of various goods depends on many factors..
such as.,
* Nature of commodity..
* Avaibility of subsitute..
* Multiple uses..
* Habits of the consumer..

etc..

So salt ...Is a necessary good for a consumer ..he will purchase this in any price level...so it's demand is inelastic in nature...

And matchboxes....consumer spends a very small proportion of its income on matchboxes .so price didn't matter on its consumption... demand will be inelastic..