The price elasticity of demand tends to be large? (more elastic) A.if few substi

ID: 1152101 • Letter: T

Question

The price elasticity of demand tends to be large? (more elastic)

A.if few substitutes for the product are available.

B.when people spend a small share of their income on the product.

C.in the long run rather than the short run.

D.if the good is a necessity.

The demand for a product is likely to be less elastic

A.in the long run than in the short run.

B.when fewer substitutes for the product are available.

C.the larger the share of the total budget spent on the product.

D.when fewer complementary products are available.

1. The correct answer is C. Demand is more elastic in the long run.

2. The correct answer is B.

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