Asked by Ashley Fondeur on May 27, 2024
Verified
Which of the following is not characteristic of a product with relatively inelastic demand?
A) The good is regarded by consumers as a necessity.
B) There are a large number of good substitutes for the good.
C) Buyers spend a small percentage of their total income on the product.
D) Consumers have had only a short time period to adjust to changes in price.
Inelastic Demand
A situation where the demand for a product does not significantly change with a change in price.
Good Substitutes
Products or services that can be used in place of each other, with consumers willing to switch from one to the other if the price or quality changes.
Necessity
Goods or services considered essential for basic human survival and well-being, such as food, water, and shelter.
- Identify factors that affect the elasticity of demand and supply.
- Analyze the variances between elastic and inelastic demand and supply frameworks.
Verified Answer
Learning Objectives
- Identify factors that affect the elasticity of demand and supply.
- Analyze the variances between elastic and inelastic demand and supply frameworks.
Related questions
The Supply of Product X Is Inelastic (But Not Perfectly ...
An Increase in the Price of Tickets to a Popular ...
The Demand for a Necessity Whose Cost Is a Small ...
Airlines Charge Business Travelers More Than Leisure Travelers Because There ...
A Glass Company Making Windows for Houses Also Makes Windows ...