Solved

For a Particular Good, a 12 Percent Increase in Price

Question 172

Multiple Choice

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.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q167: Figure 5-8<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7555/.jpg" alt="Figure 5-8

Q168: The flatter the demand curve that passes

Q169: Last year, Damaris bought 8 burgers when

Q170: Studies indicate that the price elasticity of

Q171: Scenario 5-2<br>Milk has an inelastic demand, and

Q173: Figure 5-4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7555/.jpg" alt="Figure 5-4

Q174: Suppose the price of gas increases by

Q175: When the price of good A is

Q176: If a supply curve is perfectly horizontal,

Q177: Which of the following is likely to