The Price Elasticity of Demand for a Good Is 5

question 54

Multiple Choice

The price elasticity of demand for a good is 5.Which of the following would be an explanation for this?

• A) The good is a necessity.
• B) The good is broadly defined.
• C) Expenditure on the good is a large portion of one's total income.
• D) The time interval considered is short.
• E) Expenditure on the good is a small portion of one's total income

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Definitions:

Normative Social Influence

The influence of other people that leads us to conform in order to be liked and accepted by them.

Persuasive Arguments

Statements designed to convince or influence others to accept a specific point of view or action.

Deindividuation

A psychological state where an individual loses self-awareness and personal responsibility in groups, often leading to atypical behavior.

Individuality

The quality or character of being an individual; particularly of being a uniquely distinct, indivisible entity, distinguished by differences from others.