All Else Equal, the Price Elasticity of Demand Tends to Be

question 58

Multiple Choice

All else equal, the price elasticity of demand tends to be higher when:

• A)a good has many substitutes.
• B)the time horizon is relatively short.
• C)people spend a small fraction of their budget on the good.
• D)supply increases.

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Definitions:

Lecithin

A fatty substance found in plant and animal tissues, used as an emulsifier in food production and as a supplement.

Sodium Stearate

A sodium salt of stearic acid, often used as a surfactant in soaps and as a thickening agent.

Calcium Ions

Positively charged calcium atoms (\(Ca^{2+}\)) that play crucial roles in biological processes, including muscle contraction, neurotransmitter release, and bone formation.

Lipid Bilayer

A fundamental structure in cell membranes composed of two layers of lipid molecules, crucial for cellular integrity and function.