Which of the Following Is a Correct Statement About the Own

question 77

Multiple Choice

Which of the following is a correct statement about the own price elasticity of demand?

• A) Demand tends to be more inelastic in the short term than in the long term.
• B) Demand tends to be more elastic as more substitutes are available.
• C) Demand tends to be more inelastic for goods that comprise a smaller share of a consumer's budget.
• D) All of the statements are correct.

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Definitions:

Antitrust Cases

Legal actions taken by government entities to prevent or reduce monopolies and maintain competition within markets.

Federal Trade Commission

A federal agency established to promote consumer protection and the elimination and prevention of anticompetitive business practices.

Relevant Market

A market segment defined by the interchangeability of goods or services, determined by factors such as geographic reach, product characteristics, and consumer preferences, used for analyzing competition and regulatory concerns.

Horizontal Merger

A business consolidation that occurs between firms operating in the same industry, often aimed at achieving economies of scale, efficiencies, or increased market share.