Which of the following would result in a higher absolute value of the price elasticity of demand for a product?
A) The time period under consideration is short.
B) The good is a necessity.
C) The expenditure on the good is small relative to one's budget.
D) A wide variety of substitutes are available for the good.
D
Economics
You might also like to view...
Because of the existence of the aggregate demand multiplier, a $10 billion change in expenditure
A) shifts the aggregate demand curve by more than $10 billion. B) shifts the aggregate demand curve by $10 billion. C) shifts the aggregate demand curve by less than $10 billion. D) changes the slope of the aggregate demand curve so it is less stee
Economics
Classical theory advocates ________ policy and Keynesian theory advocates ________ policy
a. fixed wages; flexible wages b. nonintervention; intervention c. active; nonstabilization d. active; passive
Economics