For a Particular Good, a 3 Percent Increase in Price

question 23

Multiple Choice

For a particular good, a 3 percent increase in price causes a 10 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?

• A) The relevant time horizon is short.
• B) The good is a necessity.
• C) The market for the good is broadly defined.
• D) There are many close substitutes for this good.

---

Definitions:

Intestate

The condition of having died without a valid will, leading to the distribution of the deceased's estate according to state laws.

Probate

A rephrased definition: The court-supervised process of authenticating a deceased person’s will, settling their debts, and distributing their estate to the rightful heirs.

Incorporation by Reference

A method where a document includes by reference all or portions of another document, making the referenced material part of the new document.

Extrinsic Documents

Documents that are not part of the original contract but are referenced and incorporated by implication or necessity.