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.
b
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If the price elasticity of demand for peanut butter is 2.4, then peanut butter
A) has an elastic demand. B) has an inelastic demand. C) has a unit elastic demand. D) is a normal good.
Refer to above figure. What happens to the Consumer Surplus of Hungarian customers as a result of this subsidy?
What will be an ideal response?
Job losers typically account for ____ of the unemployed
a. 80 to 90 percent b. 50 to 60 percent c. 30 to 40 percent d. 10 to 20 percent
Political instability is an impediment to development mainly because it:
A. undermines both domestic and foreign investment in a developing country. B. creates cultural and social differences among groups in developing countries. C. produces excessive levels of domestic saving. D. redistributes income.