Other Things Constant, the Price Elasticity of Demand for a Product

question 120

Multiple Choice

Other things constant, the price elasticity of demand for a product will be smaller (more inelastic) if:

• A) people spend a large share of their income on the product.
• B) people spend an insignificant share of their income on the product.
• C) the population in the market area is large.
• D) there are many good substitutes for the product.

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Definitions:

B.S. Degree

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A division of people based on social and economic factors, including income, education, and occupation.

Retirement

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Elder Care

The provision of support and services to meet the needs of older adults, including medical, personal, and social care.