What is likely to cause a high price elasticity of demand for a product? Pick a,b,c, or d a. The product is habit forming b. Expenditure on the product forms a small proportion of total spending c. The product is considered to a be a necessity? d. There were close substitutes to the product?
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The measure that depicts the change in quantity being demanded with respect to change in price level is known as price elasticity of demand.
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- The price elasticity of demand for a product tends to be greater the Select one: A. fewer close substitutes for it there are. B. more close substitutes for it there are. C. shorter the time span being considered. D. more necessary the product becomes.Which is characteristic of a product with elastic demand? A. The good is regarded by consumers as a necessityB. There are a large number of good substitutes for the goodC. Buyers spend a small percentage of their total income on the productD. Consumers have had only a short time period to adjust to changes in pricePrice elasticity of demand is more likely to be greater than one if: A. consumers have a long time to adjust to a price change. B. the product is a necessity. C. demand is inelastic. D. there are few close substitutes for the product. E. total revenue declines in response to a price reduction.
- Supply and Demand The table below gives thequantity of graphing calculators demanded and thequantity supplied for selected prices.a. Find the linear equation that gives the price as afunction of the quantity demanded.b. Find the linear equation that gives the price as afunction of the quantity supplied.c. Use these equations to find the market equilibriumprice.The demand for rice: a. have the same elasticity with the soft drink b. is more elastic than the demand for car c. all of the above d. have finite utilityWhich of these products would demonstrate the most elasticity in a middle-income household? a. Fruit juice b. Toothpaste c. A dining room table d. A newspaper e. Brown bread
- 35. The primary determinant of the price elasticity of supply of a good is: A. its degree of substitutability. B. the time frame for purchase of the good. C. fraction of a company's costs spent on the good. D. the amount of time suppliers have to respond to a price change.The supply of a good will be more elastic, the a. more the good is considered a luxury b. broader is the definition of the market for the good. c. larger the number of close substitutes for the good. d. longer the time period being considered.The price elasticity of demand is more likely to be inelastic if Othere are a lot of substitutes available. O the price of the product is a large fraction of income. Othere is a long time frame involved. O the product is a necessity.
- when the income elasticity of demand is greater than unity, the commodity is a. A non-related good. b. A luxury c. An inferior good d. A necessityA good tends to have a small price elasticity ofdemand ifa. the good is a necessity.b. there are many close substitutes.c. the market is narrowly defined.d. the long-run response is being measuredWho's bigger elasticity of market or individual?