No, because the nature of the two goods is different. Salt , a necessary good, will have constant consumption and marginal consumers will reduce the consumption of cigarettes, which is non-essential.
If prices of salt and ciggrates, both rises by 10% , will the qt. demanded of both goods affected in an equal manner?
Answers
Raghav Jain
No, because the nature of the two goods is different. Salt , a necessary good, will have constant consumption and marginal consumers will reduce the consumption of cigarettes, which is non-essential.