Price Elasticity of Demand Is More Likely to Be Greater

question 76

Multiple Choice

Price elasticity of demand is more likely to be greater than one if:

• A)consumers have a long time to adjust to a price change.
• B)the product is a necessity.
• C)demand is inelastic.
• D)there are few close substitutes for the product.
• E)total revenue declines in response to a price reduction.

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