In Which of the Following Situations Is the Absolute Price

question 268

Multiple Choice

In which of the following situations is the absolute price elasticity of demand for an item most likely to exceed a value of 1?

• A) when there are very few close substitutes for the item
• B) when there are very few producers of the item
• C) when the item's share of expenses in consumers' budgets is very small
• D) when there is considerable time to adjust to a change in the price of the item

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Definitions:

Illusion of Vulnerability

A cognitive bias where individuals underestimate their susceptibility to negative events.

Deindividuated

A psychological state characterized by reduced self-awareness and diminished social identity, often leading to disinhibited behavior.

Combative

Characterized by an eagerness to fight or be aggressive.

Mindless

Acting or doing something without conscious thought or attention, often resulting in automatic or habitual behavior.