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:

Transvestism

The practice of dressing and acting in a style or manner traditionally associated with the opposite sex.

Oral Contraceptives

Medications taken orally to prevent pregnancy, which generally contain hormones estrogen and progesterone.

Viagra

A medication commonly used to treat erectile dysfunction and pulmonary arterial hypertension by increasing blood flow.

Transgender Individuals

People whose gender identity or expression differs from the sex they were assigned at birth.