For a Particular Good,a 5 Percent Increase in Price Causes

question 237

Multiple Choice

For a particular good,a 5 percent increase in price causes a 2 percent decrease in quantity demanded.Which of the following statements is most likely applicable to this good?

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

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