A Product's Price Elasticity of Demand Is Likely to Be

question 94

Multiple Choice

A product's price elasticity of demand is likely to be greater

• A) if it only has a few substitutes.
• B) if consumers spend a small proportion of income on the product.
• C) the less time consumers have to adjust to price changes.
• D) if the product is a luxury good rather than a necessity.
• E) Both answers C and D are correct.

---

Definitions:

Rewarded

Recognized, recompensed, or given a prize for one's efforts, achievements, or behavior, often motivating continued performance or conduct.

Performance Coaching

A process where a coach supports an individual in achieving specific personal or professional competence, goals, and results.

Performance Management

A systematic approach to evaluating and improving employee performance to achieve organizational goals.

Modifying

The act of making changes or adjustments to something in order to improve it or to adapt it to new conditions.