The price elasticity of demand is smaller: A. the fewer substitutes for the product. B. the more time that has passed since the price change. C. for a specific product, such as a Ford Mustang, than for a wider category of product, such as automobiles. D. for a luxury than for a necessity.

The price elasticity of demand is smaller: A. the fewer substitutes for the product. B. the more time that has passed since the price change. C. for a specific product, such as a Ford Mustang, than for a wider category of product, such as automobiles. D. for a luxury than for a necessity.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 2E: The price elasticity of demand for personal computers is estimated to be 2.2. If the price of...

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Question

The price elasticity of demand is smaller:
A. the fewer substitutes for the product.
B. the more time that has passed since
the price change.
C. for a specific product, such as a Ford
Mustang, than for a wider category of
product, such as automobiles.
D. for a luxury than for a necessity.

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