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:

Compensable Factors

Aspects of a job that are used to determine its worth for the purpose of setting compensation, such as skills required, responsibilities, and working conditions.

Skill Category

A classification based on types of competencies and knowledge required by jobs, such as technical, analytical, or interpersonal skills.

Pay Equity

The principle that individuals should receive equal pay for work of equal value, aimed at eliminating wage disparities based on gender, race, or other non-job-related factors.

Bargaining Unit

A group of employees with a clear and identifiable community of interests who are represented by a single labor union in collective bargaining.