Which of the Following Goods Will Have a Higher Price

question 91

Multiple Choice

Which of the following goods will have a higher price elasticity of demand?​

• A)A good with few substitutes.
• B)A good with many substitutes.
• C)A good that represents a small proportion of the consumer's budget.
• D)A good that is broadly defined.
• E)A good that is a necessity.

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Definitions:

Third Variable

A factor that is not directly involved in the hypothesis being tested but may influence the relationship between the independent and dependent variables.

Reverse Causality

A situation in research or analysis where the direction of cause-and-effect is opposite to what is commonly presumed or is being investigated.

A Priori Causal Theory

Knowledge or reasoning based on theoretical deduction rather than empirical evidence, used to speculate about causes.

Dependent Variable

The variable in an experiment that is being tested and measured, often seen as the outcome or effect in a study.