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MICROECONOMICS
PRODUCT: “SALT”
Salt is a mineral composed primarily of sodium chloride Pakistan today
contains one of the world's largest salt deposits and the second-largest
mine — the Khewra Salt Mine in Jhelum district of the country's Punjab
province.  According to officials from the Pakistan Mineral
Development Corporation, Pakistan's annual export of salt totals
around 400,000 tons. As per data, the largest importers of Pakistan's salt
include USA, India, China, UK, Germany, Australia, Brazil, Italy,
Afghanistan and Canada.
Here is the data of prices and production of five years 2015-2019 of salt
in Pakistan:

YEAR PRICE PER KG PRODUCTION

2015 10.0 4,484
2016 10.0 6,241
2017 10.6 9,783

2018 11.1 10,030

2019 24.87 9,577

DEMAND DETERMINANTS:
1. Salt has inelastic demand because it has no substitute. The demand
for salt is inelastic because irrespective of the change in price, the
demand for salt remains the same. Inelastic demand is usually seen
for necessary goods like salt, sugar, milk etc.
2. Small amount of household budget. It is a necessity to most
people, and it represents a small proportion of most people's
budget.
3. Availability of close substitutes makes the demand sensitive to
change in the prices. On the other hand, commodities with few or
 no substitutes like wheat and salt have less price elasticity of
demand. Change in price of salt has a little or no impact on its
quantity demanded.
SUPPLY DETERMINANTS:
1. If rainfall is plentiful, timely, and well distributed, there will be
bumper crops. On the contrary, floods, droughts, or earthquakes
and other natural calamities are bound, to affect production
adversely. This is one set of conditions which brings about a
change in the supply of salt.
2. Income rate, It happens because rich people are not influenced
much by changes in the price of goods. But, poor people are
highly affected by increase or decrease in the price of goods.
3. Variation in price.