Asked by
Deontrae Brown
on Dec 11, 2024
Verified
Other things constant, the price elasticity of demand for a product will tend to be smaller (more inelastic) if
A) people spend a large share of their income on the product.
B) people spend an insignificant share of their income on the product.
C) the population in the market area is large.
D) there are many good substitutes for the product.
Price Elasticity
A measure of how much the quantity demanded or supplied of a product changes in response to a change in its price.
Inelastic
A description of a situation where the quantity demanded or supplied changes by a smaller percentage than the changes in price.
- Ascertain the factors leading to enhanced elasticity or inelasticity in demand.
Verified Answer
MS
Learning Objectives
- Ascertain the factors leading to enhanced elasticity or inelasticity in demand.