The Demand for a Good Is More Price Elastic

question 83

Multiple Choice

The demand for a good is more price elastic

• A) in the short run than in the long run.
• B) if closer substitutes are available.
• C) if the good is a necessity rather than a luxury.
• D) if the share of the good in the average consumer's budget is smaller.

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Definitions:

Production Sector

The segment of the economy involved in the production of goods and services.

Consumers Spend

Consumers spend refers to the total amount of money spent by households in an economy on goods and services over a period.

Dark Pools

Private financial forums or exchanges for trading securities, not accessible by the investing public.

Broker-Dealer Organizations

Broker-dealer organizations are financial institutions that buy and sell securities for their own accounts and on behalf of their customers, and often provide investment advice and related services.