If a Good Has a Price Inelastic Demand, Then Which

question 57

Multiple Choice

If a good has a price inelastic demand, then which of the following is not likely to be characteristic of this good?

• A) The good is a necessity and is relatively unimportant in the household budget.
• B) There are many substitutes for the good.
• C) Consumers spend a small percentage of their income on the good.
• D) Consumers do not have much time to adjust to market changes.

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Definitions:

Sociality Corollary

A principle suggesting that the establishment and understanding of personal identity are significantly influenced by social relationships and interactions.

Individuality Corollary

A concept suggesting that individuals perceive events and entities in a unique manner based on their personal construct system.

Corollary

A proposition that follows from one already proven, a natural consequence or result.

Poles

In psychology, it can refer to the extremes of a personality dimension or trait, such as introversion/extroversion, where individuals can be positioned along a continuum.