Which of the Following Will Cause Demand to Be Relatively

question 150

Multiple Choice

Which of the following will cause demand to be relatively elastic?

• A)There are few substitutes
• B)The time interval is relatively long
• C)The good is considered a necessity
• D)The good involves a relatively small portion of the consumers' budget
• E)The time interval is relatively short

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Definitions:

Money Demand Curve

A graph showing the relationship between the interest rate and the total amount of money that consumers and businesses wish to hold at any given time.

Nominal Variable

A variable measured in terms of money that has not been adjusted for inflation, reflecting the current price level.

Real Variable

An economic measure that has been adjusted for changes in price level, enabling comparison of quantities across different times.

Excess Supply

A situation where the quantity supplied of a good or service exceeds the quantity demanded at the current price, often leading to a decrease in price.