Which of the Following Statements Would You Expect to Be

question 11

Multiple Choice

Which of the following statements would you expect to be true about price elasticities of demand for T-shirts and clothing?

• A)Compared with clothing,T-shirts have a lower price elasticity of demand because they are specifically defined.
• B)Because T-shirts are clothing,but not all clothing is T-shirts,T-shirts would have a lower price elasticity of demand than clothing.
• C)Clothing has a higher price elasticity of demand because it is a necessity.
• D)T-shirts would have the same price elasticity of demand as clothing.
• E)Clothing has a lower price elasticity of demand because it is more broadly defined.

---

Definitions:

GDP Price Index

A measure that tracks changes in prices of all goods and services produced within a country and is used to calculate real GDP.

Base Year

A specific year chosen as a reference point for financial or economic data comparison over time.

Inflation

The speed at which prices for goods and services generally ascend, wearing away the power to purchase.

Base Year

A specific year against which economic growth is measured, serving as a standard or benchmark.