Asked by
Precious Persuade
on Nov 17, 2024
Verified
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.
Quantity Demanded
The total amount of a good or service that consumers are willing and able to purchase at a given price within a specified time period.
Substitutes
Products or services that can serve as replacements for each other, satisfying the same customer need or want.
- Distinguish the qualities of demand elasticity, involving the segments of inelastic and elastic demand.
- Determine the elements influencing the elasticity of demand price for a product.
Verified Answer
NK
Learning Objectives
- Distinguish the qualities of demand elasticity, involving the segments of inelastic and elastic demand.
- Determine the elements influencing the elasticity of demand price for a product.