A Good Will Tend to Be More Price Elastic If

question 116

Multiple Choice

A good will tend to be more price elastic if it

• A)is a luxury good.
• B)has no close substitutes.
• C)is a small part of the household budget.
• D)is a necessity.

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Definitions:

Price Of Clams

The market rate at which clams are bought or sold.

Horizontal Axis

In a graph or chart, the x-axis, representing the independent variable or baseline measurement criteria.

Budget Line

A representation of all the combinations of goods and services a consumer may purchase given current prices within their income level.

Price Of Potatoes

The cost per unit at which potatoes are sold or bought in the market, affected by factors like supply, demand, and production costs.