In Which of the Following Situations Is the Absolute Price

question 268

Multiple Choice

In which of the following situations is the absolute price elasticity of demand for an item most likely to exceed a value of 1?

• A) when there are very few close substitutes for the item
• B) when there are very few producers of the item
• C) when the item's share of expenses in consumers' budgets is very small
• D) when there is considerable time to adjust to a change in the price of the item

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Definitions:

Civil Liability

The responsibility to compensate for wrongs or damages caused by one’s actions or negligence to another party, as governed by civil law.

Implied Agreement

An unwritten contract that is assumed to exist based on the actions and circumstances of the parties involved.

Competent and Professional

Having the necessary ability, knowledge, and skill to perform tasks or duties effectively and with a degree of quality expected by one's profession.

Liability

Legal responsibility for one's actions or the obligation to make restitution for loss or damage.