the price-elasticity of perfume and salt.

Price elasticity of demand measures the responsiveness of quantity demanded to a change in price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. A high price elasticity indicates that demand is sensitive to price changes, while a low elasticity indicates that demand is less responsive to price changes.

To determine the price elasticity of perfume and salt, you would need data on the quantity demanded and price changes for each product. Here's a step-by-step guide to calculating price elasticity:

1. Gather data: Collect information on the initial price (P1) and quantity demanded (Q1) for perfume and salt. Also, obtain data on the new price (P2) and corresponding quantity demanded (Q2) after a price change.

2. Calculate the percentage change in price: Use the formula: Percentage change in price = ((P2 - P1) / (P1)) * 100.

3. Calculate the percentage change in quantity demanded: Use the formula: Percentage change in quantity demanded = ((Q2 - Q1) / (Q1)) * 100.

4. Calculate price elasticity: Divide the percentage change in quantity demanded by the percentage change in price. The formula for price elasticity is: Price elasticity = (Percentage change in quantity demanded) / (Percentage change in price).

5. Interpret the price elasticity: A value greater than 1 indicates elastic demand, meaning that a price change has a relatively larger effect on quantity demanded. A value less than 1 indicates inelastic demand, meaning that quantity demanded is less responsive to a price change. If the value is exactly 1, it denotes unitary elasticity, indicating that the percentage change in quantity demanded is equal to the percentage change in price.

Remember, the price elasticity of perfume and salt can vary depending on factors such as consumer preferences, substitutes, and market conditions.