Which of the Following Comparisons Is  True  Regarding Price Elasticity

question 6

Multiple Choice

Which of the following comparisons is  true  regarding price elasticity of demand?

• A) The demand for monthly car payments is less elastic than the demand for a monthly gym membership because the car payments require a greater share of the consumer's income.
• B) The demand for gasoline a year after a price change is less elastic than the demand for gasoline a week after a price change because consumers have had time to adjust.
• C) The demand for water is less elastic than the demand for diamonds because water is a necessity but diamonds are a luxury.
• D) The demand for cough syrup is less elastic than the demand for insulin because there are no close substitutes for insulin.

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Definitions:

Semicircular Canals

Three fluid-filled tubes in the inner ear that help maintain balance by sensing rotational movements.

Misjudge Sizes

The incorrect estimation or perception of the actual size of an object, which can be due to cognitive biases or visual illusions.

Feature Detectors

Neurons in the brain that identify specific features of a stimulus, such as shape, angle, or movement.

Vertical Lines

Lines that run up and down and are perpendicular to the horizon.