All Else Equal, the Price Elasticity of Demand for a Good

question 122

Multiple Choice

All else equal, the price elasticity of demand for a good tends to be lower:

• A)if the good has few close substitutes.
• B)if the good represents a large share of a consumer's budget.
• C)in the long run.
• D)if the good has many close substitutes.

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Definitions:

Real-Life Settings

Environments or situations that occur in the natural, everyday world, outside of controlled or artificial experimental conditions.

Questionnaires

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The inherent characteristics, including ways of thinking, feeling, and behaving, that all humans are presumed to share.

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The quality of being spontaneous, unplanned or arising naturally and without premeditation.