When Is Price Elasticity of Demand Said to Be Greater

question 29

Multiple Choice

When is price elasticity of demand said to be greater?

• A) when there are fewer available substitutes
• B) the longer the period of time consumers have to adjust to price changes
• C) the shorter the period of time consumers have to adjust to price changes
• D) when the elasticity of supply is greater

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Definitions:

Exponential Rate

The rate at which something grows or decays, characterized by a constant ratio over equal increments of time.

Half-Life

Half-life is a term used in nuclear physics and chemistry to describe the time required for one half of the atoms of a radioactive substance to undergo decay.

Growth Model

A mathematical representation used to describe how a quantity changes over time.