Which of the Following Goods Is Likely to Have the Largest

question 100

Multiple Choice

Which of the following goods is likely to have the largest price elasticity of demand?

• A) a bicycle
• B) a mountain bike
• C) a Cannondale mountain bike
• D) a green Cannondale mountain bike

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Definitions:

Factor Endowments

The amount of land, labor, capital, and entrepreneurship that a country or region possesses, which determines its comparative advantage in international trade.

Comparative Advantage

The ability of an individual or entity to produce goods or services at a lower opportunity cost than other producers.

Climate

The long-term pattern of weather conditions in a particular area, including temperature, precipitation, humidity, and seasonal variations.

Technology

The use of scientific understanding to achieve practical goals, particularly within the industrial sector.