If a Good Has a Price Inelastic Demand, Then Which

question 57

Multiple Choice

If a good has a price inelastic demand, then which of the following is not likely to be characteristic of this good?

• A) The good is a necessity and is relatively unimportant in the household budget.
• B) There are many substitutes for the good.
• C) Consumers spend a small percentage of their income on the good.
• D) Consumers do not have much time to adjust to market changes.

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Definitions:

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