The Price Elasticity of Demand for Apartments Is 1

question 95

Multiple Choice

The price elasticity of demand for apartments is 1.3,while the price elasticity of demand for toothpicks is 0.4.The likely reason for the difference is that

• A) there are few substitutes for toothpicks.
• B) apartments are chosen over a long period of time.
• C) the fraction of income spent on toothpicks is very small.
• D) toothpicks are a necessity.
• E) apartments are a luxury.

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Definitions:

Generativity

A stage of psychosocial development where individuals focus on guiding the next generation or contributing to society's welfare.

Care

The provision of what is necessary for the health, welfare, maintenance, and protection of someone or something.

Innate Biological Factors

Natural, genetic, or hereditary influences on an individual's physical and psychological traits.

Stages of Development

Phases of growth throughout an individual's life characterized by unique challenges, achievements, and psychological transitions, impacting overall development.