For a Particular Good,an 8 Percent Increase in Price Causes

question 115

Multiple Choice

For a particular good,an 8 percent increase in price causes a 12 percent decrease in quantity demanded.Which of the following statements is most likely applicable to this good?

• A)There are no close substitutes for this good.
• B)The good is a necessity.
• C)The market for the good is broadly defined.
• D)The relevant time horizon is long.

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Definitions:

Global Resource Demand

The worldwide need or desire for resources such as energy, minerals, and agricultural products, driven by population growth and economic development.

Technological Progress

Advances in technology that improve the efficiency of production processes, leading to higher output with the same or lower input levels.

Total Fertility Rate

The average number of children that would be born to a woman over her lifetime in a specific population or country.

Birthrate

The number of live births per thousand of the population per year, reflecting the growth rate of a population.