Which of the following statements is FALSE?
A) Goods or services for which a greater proportion of income is spent on the items generally have a more elastic demand.
B) The longer the time that has elapsed since a price change, the more elastic the demand.
C) Goods or services that have few close substitutes generally have a less elastic demand.
D) A narrowly defined good or service generally has a less elastic demand.

Question

Quizplus · Accepted Answer

A narrowly defined good or service is more likely to have a more elastic demand because it is easier for consumers to find close substitutes for very specific items. The other statements accurately reflect principles of price elasticity of demand.

Which of the Following Statements Is FALSE