The Demand for a Good Is More Price Elastic

question 229

Multiple Choice

The demand for a good is more price elastic

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

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Definitions:

Placebo

A substance that looks and feels like the substance being tested in an experiment, but does not contain the active ingredient.

Moderate Depression

A mental health condition characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities, but to a lesser degree than severe depression.

Severe Depression

A mental health condition characterized by deep sadness, loss of interest in activities, and other symptoms that impair daily functioning.

Canadian Psychiatric Association

A professional association in Canada that represents psychiatrists and advocates for the provision of high-quality mental health services.