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Price elasticity of demand for a product is likely to be greater the smaller the proportion...

Price elasticity of demand for a product is likely to be greater

the smaller the proportion of one`s incomes is spent on the good
the greater the amount of time passes
the fewer the number of substitutes
if the product is a necessity rather than a luxury

The demands for such products as salt and electricity tend to be:

perfectly price elastic.
relatively price inelastic.
relatively price elastic.
of unit price elasticity.
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Answer #1

As greater time passes more substitutes become available which increase the price elasticity of demand.

OPTION B

Salt and electricity are necessities therefore, demand for them is relatively price inelastic.

OPTION B

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