A product's price elasticity of demand is likely to be greater
A) if it only has a few substitutes.
B) if consumers spend a small proportion of income on the product.
C) the less time consumers have to adjust to price changes.
D) if the product is a luxury good rather than a necessity.
E) Both answers C and D are correct.
D
Economics
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In 2008, the Bank of England increased the country's money supply and lowered its interest rate. This policy was designed to
A) encourage people to buy more goods and services. B) shift the aggregate demand curve rightward. C) cause a movement up along the aggregate demand curve. D) Both A and B are correct.
Economics
All of a firm's inputs are considered to be variable in the long run
a. True b. False Indicate whether the statement is true or false
Economics