Assertion (A): The demand for commodities like salt, matches etc. is highly elastic. Reason (R): The demand for commodities like salt, matches etc. is highly inelastic because the consumer spends a very small amount of expenditure in relation to his/her income.

Question

KollegeApply · Accepted Answer

A is false but (R) is true. Explanation: The assertion is false since the demand for low-cost everyday essentials such as salt and matches is highly inelastic, which means that consumption does not change considerably as costs fluctuate. Reasoning is true because consumers spend only a small portion of their total income on these things, making them very insensitive to price changes and directly explaining why demand stays inelastic.

AChoose Your Answer