Demand Will Be More Elastic When

question 6

Multiple Choice

Demand will be more elastic when

• A) the time the consumer has to adjust to price changes is short.
• B) the price of the good is low.
• C) the number of good substitutes is large.
• D) the consumption of the good is essential.

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Definitions:

Ratio Level

The highest level of measurement that describes data with a natural zero point and equal intervals, allowing for the computation of ratios.

Absolute Zero

A point on a scale where there is a complete absence of the measured phenomenon, allowing for ratio comparisons.

Ordinal Level

A measurement scale that categorizes data while preserving the order of the categories but not assuming equal intervals between them.

Order

The arrangement or sequence of elements or events in a particular way.