Demand Will Be More Elastic When

question 6

Multiple Choice

Demand will be more elastic when

• A) the time the consumer has to adjust to price changes is short.
• B) the price of the good is low.
• C) the number of good substitutes is large.
• D) the consumption of the good is essential.

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Definitions:

Sampling Error

The discrepancy between the statistical measures of a sample and the actual parameters of the whole population.

Sample

A group chosen from the larger population for the purpose of collecting statistical data through observation or questioning.

Population

The entire group of individuals or items that is the subject of a statistical analysis.

Nonresponse Error

The bias that occurs in survey statistics when individuals selected for the survey do not respond and their nonresponse is related to the measure of interest.