For a Particular Good, a 3 Percent Increase in Price

question 23

Multiple Choice

For a particular good, a 3 percent increase in price causes a 10 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?

• A) The relevant time horizon is short.
• B) The good is a necessity.
• C) The market for the good is broadly defined.
• D) There are many close substitutes for this good.

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Definitions:

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing their behaviors, thoughts, and feelings.

Cultural Context

The social, religious, economic, and political conditions that influence the understanding and interpretation of ideas and concepts.

Studying Personality

The field of psychology that examines individual differences in characteristics, traits, and behaviors.

Psychosocial Development

A theory proposing stages through which individuals progress throughout their lives, involving challenges in the domains of personal and social development.