For Many Goods, the Price Elasticity of Demand Increases Over

question 109

Multiple Choice

For many goods, the price elasticity of demand increases over time after a price hike because

• A) consumer incomes tend to increase over time.
• B) inflation increases all prices and incomes over time.
• C) the ability to find good substitutes for the product whose price rose increases over time.
• D) All of the above answers are correct.

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Definitions:

Sufficient Consideration

Consideration in contract law that is adequate and meets legal requirements, ensuring the contract is binding and enforceable.

Promissory Note

A financial document in which one party promises to pay another party a specified sum of money at a defined future date or on demand.

Payable

Refers to the amount of money that is owed by an individual or organization and is due to be paid.

Shelter Principle

A legal concept in real estate and commerce that protects the rights of a subsequent buyer of property if the immediate seller had legitimate rights to transfer it.