Answer:
In Taghaza, where salt was a crucial commodity due to its use in preserving food, the demand for wood was likely more elastic compared to towns without salt. This is because in Taghaza, where salt was scarce and essential, people would be more willing to substitute other materials, such as wood, if the price of wood increased. Since salt was indispensable, people would be less willing to reduce their demand for salt even if its price increased, making the demand for wood more elastic in comparison.
Regarding the graph, it seems there is no graph provided. Could you please provide the graph of the market in equilibrium so I can answer the questions related to it?
Explanation:
Certainly! Elasticity of demand refers to the responsiveness of the quantity demanded of a good to changes in its price. When demand is elastic, it means that a small change in price leads to a relatively larger change in quantity demanded. Conversely, when demand is inelastic, it means that a change in price results in a proportionally smaller change in quantity demanded.
In the context of Taghaza, where salt was a scarce and essential commodity, the demand for wood would likely be more elastic compared to towns without salt. This is because in Taghaza, people would be more willing to find substitutes for wood if its price increased. Since salt was crucial for preserving food and there were limited alternatives, people would be less willing to reduce their demand for salt even if its price increased. This means that the demand for wood, being more elastic, would respond more significantly to changes in its price compared to the demand for salt in Taghaza.
