Asked by
Richard Grayson
on Oct 08, 2024
Verified
The narrower the definition of a product:
A) the larger the number of substitutes and the greater the price elasticity of demand.
B) the smaller the number of substitutes and the greater the price elasticity of demand.
C) the larger the number of substitutes and the smaller the price elasticity of demand.
D) the smaller the number of substitutes and the smaller the price elasticity of demand.
Price Elasticity
A measure of how much the quantity demanded of a good responds to a change in its price, indicating how sensitive consumers are to price changes.
Substitutes
Goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.
- Ascertain the components that modify the malleability of demand, taking into account time and the accessibility of replacements.
Verified Answer
AJ
Learning Objectives
- Ascertain the components that modify the malleability of demand, taking into account time and the accessibility of replacements.