For a Particular Good,a 10 Percent Increase in Price Causes

question 284

Multiple Choice

For a particular good,a 10 percent increase in price causes a 3 percent decrease in quantity demanded.Which of the following statements is most likely applicable to this good?

• A)The relevant time horizon is short.
• B)The good is a luxury.
• C)The market for the good is narrowly defined.
• D)There are many close substitutes for this good.

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Definitions:

Drinking Alcohol

The act of consuming beverages that contain ethanol, which is a psychoactive substance with various effects on the body and mind.

Common Practice

A procedure or method that is widely used and accepted within a particular field or industry.

High-Carbohydrate Diet

A diet that has a higher proportion of carbohydrates in relation to proteins and fats.

Physical Activity

Any bodily movement produced by skeletal muscles that requires energy expenditure, including activities undertaken while working, playing, carrying out household chores, traveling, and engaging in recreational pursuits.