For a Particular Good, a 12 Percent Increase in Price

question 172

Multiple Choice

For a particular good, a 12 percent increase in price causes a 3 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?

• A)There are many substitutes for this good.
• B)The good is a necessity.
• C)The market for the good is narrowly defined.
• D)The relevant time horizon is long.

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Definitions:

Polite Language

The use of courteous and respectful language in communication.

Credibility

A measure of your believability based on how reliable you are and how much trust you evoke in others.

Cultural Differences

The variations in the practices, customs, and behaviors of different societies or groups of people.

Motivation

The combination of forces that drive people to satisfy their needs.