Which of the Following Generalizations Is Not Correct

question 44

Multiple Choice

Which of the following generalizations is not correct?

• A)The larger an item is in one's budget, the greater the price elasticity of demand.
• B)The price elasticity of demand is greater for necessities than it is for luxuries.
• C)The larger the number of close substitutes available, the greater will be the price elasticity of demand for a particular product.
• D)The price elasticity of demand is greater the longer the time period under consideration.

---

Definitions:

Answerability

Refers to the obligation of individuals or entities to provide an explanation or justification for their actions to stakeholders or governing bodies.

Liability

The state of being legally responsible for something, especially in terms of financial or other penalties.

Disseminating

The act of spreading information, knowledge, or ideas widely.

Collecting

The act of gathering items or information systemically, often as a hobby, for research, or for the purpose of analysis and decision-making.