The Price Elasticity of a Good Will Tend to Be

question 85

Multiple Choice

The price elasticity of a good will tend to be larger:

• A)the longer the relevant time period for behavior change.
• B)the fewer the number of substitute goods available.
• C)if it is a staple or necessity with few substitutes.
• D)if the share of income spent on the good is small.

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Definitions:

Self-preservation

The instinctual behavior to protect oneself from harm or danger.

Psychological Reasons

Underlying mental or emotional factors that influence an individual's decisions or behaviors.

Economic Wants

Desires for specific goods, services, or experiences that can be fulfilled through economic transactions.

Benefits

The advantages or positive outcomes that result from using a product or service.