Which of the Following Statements About the Price Elasticity of Demand

question 161

Multiple Choice

Which of the following statements about the price elasticity of demand is correct?

• A)The price elasticity of demand for a good measures the willingness of buyers of the good to move away from the good as its price increases.
• B)Price elasticity of demand reflects the many economic, psychological, and social forces that shape consumer tastes.
• C)Other things equal, if good x has close substitutes and good y does not have close substitutes, then the demand for good x will be more elastic than the demand for good y.
• D)All of the above are correct.

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