Which of the Following Tends to Make Demand for a Good

question 99

Multiple Choice

Which of the following tends to make demand for a good more elastic?

• A)A reduction in the number of substitutes for the good.
• B)Consumers have a long time to adjust to a price change.
• C)The amount spent on the good is a small proportion of the consumer's budget.
• D)The good is broadly defined.
• E)The good is a necessity.

---

Definitions:

Debt

Money that is owed or due to be paid to someone else, often as a result of borrowing funds or purchasing goods and services on credit.

Fixed Costs

These are expenses that do not change with the level of goods or services produced by the business within a certain range of activity or over a certain period.

Break-Even

The point at which total costs and total revenues are equal, leading to no net loss or gain.

Variable Costs

Expenses that change in proportion to the activity of a business.