The demand for a good is less price elastic
A) if closer substitutes are available.
B) if the good is a luxury rather than a necessity.
C) if the share of the good in the average consumer's budget is smaller.
D) in the long run than in the short run.
C
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In terms of utility theory, "equilibrium" in the real world means that
a. households are consuming as much of every commodity as they would like b. households have spent their incomes in such a way that their overall satisfaction is maximized c. households have spent their incomes in such a way that their marginal utility is maximized d. households have spent their incomes in such a way that their marginal utility is zero for every product consumed e. households have spent their incomes in such a way that their total utility is zero
The general shape of the short-run aggregate supply curve is: a. upward sloping
b. downward sloping. c. vertical. d. horizontal.