Which of the following is a reason why the demand curve for an item would be more elastic?
A) The item is a necessity.
B) People's incomes are very high relative to the cost of the item.
C) The item has many very good substitutes.
D) The cost of the item forms a very small part of the consumer's budgets.
Correct Answer:
Verified
Q2: (Figure: Price Elasticity of Demand) Refer to
Q3: The demand curve for oil is inelastic,
Q5: The price of wheat increases, but few
Q6: Q7: The demand for oil is inelastic because Q8: The elasticity of demand: Q10: Why is the demand curve for oil
A) equals the inverse
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