The Figure Given Below Shows the Demand Curves for Five

question 95

Multiple Choice

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-Demand for a good becomes more elastic as:

• A)the number of substitutes available declines.
• B)the time period under consideration becomes shorter.
• C)a good makes up a larger percentage of a consumer's budget.
• D)a good makes up a smaller percentage of a consumer's budget.
• E)the producer has more time to respond to price changes.

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Definitions:

Categorical Data

A type of data that can be divided into groups or categories that are mutually exclusive and without any natural order.

Classification

The process of grouping things based on shared qualities or characteristics.

Nominal Data

Nominal data is a type of categorical data where values or categories cannot be logically ordered or ranked. The data represent labels or names that identify categories of similar items without implying hierarchy.

Arbitrary

Based on random choice or personal whim, rather than any reason or system.