Multiple Choice
If a good has a price inelastic demand, then which of the following is not likely to be characteristic of this good?
A) The good is a necessity and is relatively unimportant in the household budget.
B) There are many substitutes for the good.
C) Consumers spend a small percentage of their income on the good.
D) Consumers do not have much time to adjust to market changes.
Correct Answer:
Verified
Correct Answer:
Verified
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