A Good That Has a High Price Elasticity of Demand

question 21

Multiple Choice

A good that has a high price elasticity of demand is most likely to:

• A)have a large number of substitutes.
• B)be purchased by low-income consumers.
• C)be sold at a high price level.
• D)be produced by a single firm.
• E)be a necessary good.

---

Definitions:

Norms

Established standards of behavior or guidelines that are considered normal within a society or group.

Performance Provisions

Clauses within a contract that define the standards and conditions for performance by the parties involved.

Time for Delivery

The specific period within which goods or services must be delivered as stipulated in a contract.

Reasonable Time for Inspection

A legally acceptable period allowed for a buyer to examine goods to ensure they conform to the contract terms.