When Would Demand for a Good Tend to Be More

question 122

Multiple Choice

When would demand for a good tend to be more inelastic

• A)when there are fewer available substitutes
• B)when the time period considered is longer
• C)when the good is considered more of a luxury good
• D)when the market is more narrowly defined

---

Definitions:

Option Premium

The price paid for the right to buy or sell an underlying financial instrument at a specified strike price until the option expires.

Underlying Asset

An asset that determines the value of a financial derivative, such as options or futures.

Put Option

A financial contract giving the buyer the right, but not the obligation, to sell an underlying asset or security at a specified price within a defined time period.

Risk Profile

An individual's or entity's willingness to take risks, as well as the potential financial losses they can afford.