Which of the Following Factors Would Indicate a Less Elastic

question 4

Multiple Choice

Which of the following factors would indicate a less elastic demand?

• A) The good represents a large fraction of the budget.
• B) Demand is measured over a shorter period of time.
• C) The price of the good is low.
• D) New substitutes are created.

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Definitions:

Misrepresentation

A false or misleading statement that induces another party to enter into a contract, possibly rendering the contract voidable.

Device

An instrument, tool, or machine created for a specific function or purpose, ranging from simple tools to complex machinery.

Economic Duress

A situation where one party is forced into a contract or agreement under the pressure of financial hardships, often exploiting that party’s vulnerable position.

Business Compulsion

A scenario where a business is forced to make a decision or take an action due to external pressures or unavoidable circumstances.