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:

Foreclosed

A legal process in which a lender takes control of a property after the borrower fails to meet the repayment terms of the loan.

Second-Bidder

Refers to the auction bidder with the second-highest bid, often relevant in Vickrey auctions where this bidder's price determines the sale price.

Vickrey Auction

A sealed-bid auction where the highest bidder wins but pays the second-highest bid, encouraging true value bids.

English Auction

A type of auction where the price ascends and participants openly bid against each other, with the highest bid at the close of the auction winning.