The Demand for a Good Is Elastic

question 62

Multiple Choice

The demand for a good is elastic. Which of the following would be the most likely explanation for this?

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

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Definitions:

Utility

In the field of economics, the complete pleasure derived from the consumption of a product or service.

Budget

A projection of revenues and expenses for a specified timeframe.

Total Utility

The total satisfaction or benefit received by consuming a particular amount of a good or service.

Income

Financial returns, mainly recurring, as compensation for work or investment income.