A Product's Price Elasticity of Demand Is Likely to Be

Multiple Choice

A product's price elasticity of demand is likely to be greater

A) if it only has a few substitutes.
B) if consumers spend a small proportion of income on the product.
C) the less time consumers have to adjust to price changes.
D) if the product is a luxury good rather than a necessity.
E) Both answers C and D are correct.