A Product's Price Elasticity of Demand Is Likely to Be

question 94

Multiple Choice

A product's price elasticity of demand is likely to be greater

• A) if it only has a few substitutes.
• B) if consumers spend a small proportion of income on the product.
• C) the less time consumers have to adjust to price changes.
• D) if the product is a luxury good rather than a necessity.
• E) Both answers C and D are correct.

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Definitions:

Behavioral Symptom

Observable actions or responses that indicate the presence of a psychological condition or disorder.

Depression

A disorder related to mental health, identified by a continual depressed state or a disengagement with interests, which considerably impairs everyday living.

Melancholic Depression

A subtype of major depressive disorder characterized by specific symptoms such as profound feelings of sadness, early morning awakening, and significant weight loss.

Anhedonia

A condition characterized by a diminished ability to experience pleasure or interest in activities that typically bring joy, often associated with depression and other mood disorders.