If a Good Has a Price-Inelastic Demand, Then Which of the Following

question 38

Multiple Choice

If a good has a price-inelastic demand, then which of the following is NOT likely to be characteristic of this good?

• A) It is a necessity and is relatively small proportion of the household budget.
• B) It has many substitutes.
• C) Consumers spend a small percentage of their income on it.
• D) Consumers do not have much time to adjust to market changes.

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Definitions:

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