A product is likely to have a price elasticity of demand that exceeds 1 when
A) its price falls.
B) the percentage of income spent on it decreases.
C) it is a necessity.
D) it has close substitutes.
D
Economics
You might also like to view...
The marginal cost curve intersects the average total cost curve (ATC)
a. at the ATC's minimum point b. only when the ATC is sloping upward c. at the ATC's maximum point d. only when the ATC is sloping downward e. when the ATC intersects the fixed cost curve
Economics
If the quantity supplied stays the same no matter what the price is, then supply is
A) perfectly inelastic. B) perfectly elastic. C) unit elastic. D) undefined.
Economics