The Demand for a Good Is Less Price Elastic

question 234

Multiple Choice

The demand for a good is less price elastic

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

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Definitions:

Quadrant Model

A strategic planning tool that divides information, risks, or activities into four quadrants to facilitate analysis and decision-making.

Independent Demand

The demand for a final product or service which is not directly related to the demand for other products or services within a supply chain.

Rivets

Metal pins or bolts used to fasten two pieces of material together, commonly used in construction, manufacturing, and aerospace industries.