The Demand for a Product Is Likely to Be More

question 58

Multiple Choice

The demand for a product is likely to be more elastic:

• A) the smaller the share of the total budget spent on the product.
• B) when more complementary products are available.
• C) in the short run than in the long run.
• D) when more good substitutes for the product are available.

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Definitions:

Multiple Discriminant Analysis (MDA)

Statistical technique for distinguishing between two samples on the basis of their observed characteristics.

Statistical Technique

A method or formula derived from statistical science used to analyze, interpret, and collect data.

Samples

Small portions or quantities intended to show what the whole is like.

Observed Characteristics

Traits or features that have been recorded or noted through observation or study.