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.

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Definitions:

Milgram

Refers to a series of social psychology experiments conducted by Stanley Milgram, which demonstrated people's willingness to obey authority figures even when asked to perform actions conflicting with their personal conscience.

Obedience Level

The extent to which individuals comply with the commands or orders from authority figures.

Over The Telephone

A mode of communication or interaction that occurs through voice calls using telephones.

Increased

Refers to a quantity or condition becoming larger in size, number, value, strength, or intensity.