vinod belong to a middle income family who lives in a small city.the price of salt is rs.10 per kg.and his family consumes 5 kg of salt per annum.now all the sellers of salt have raised their price to rs.15 per kg. a)would the vinod's purchases of salt to be affected by the price increase ? why or why not ? b)in view of your answer what can you say about the price elasticity of demand for salt ? c) suppose the vinod's income doubles,how would this effect the quantity of salt consumed by his family ?
vinod belong to a middle income family who lives in a small city.the price of salt is rs.10 per kg.and his family consumes 5 kg of salt per annum.now all the sellers of salt have raised their price to rs.15 per kg. a)would the vinod's purchases of salt to be affected by the price increase ? why or why not ? b)in view of your answer what can you say about the price elasticity of demand for salt ? c) suppose the vinod's income doubles,how would this effect the quantity of salt consumed by his family ?
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 17SQ
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vinod belong to a middle income family who lives in a small city.the price of salt is rs.10 per kg.and his family consumes 5 kg of salt per annum.now all the sellers of salt have raised their price to rs.15 per kg. a)would the vinod's purchases of salt to be affected by the price increase ? why or why not ? b)in view of your answer what can you say about the
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ISBN:
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Author:
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Publisher:
Cengage Learning