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The Price Elasticity of Demand for a Good Is 5

Question 150

Multiple Choice

The price elasticity of demand for a good is 5.Which of the following would be an explanation for this?


A) The good is a necessity.
B) The good is broadly defined.
C) Expenditure on the good is a large portion of one's total income.
D) The time interval considered is short.
E) Expenditure on the good is a small portion of one's total income

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