The elasticity of demand for a product is likely to be greater,
A)if the product is a necessity, rather than a luxury good.
B)the greater the amount of time over which buyers adjust to a price change.
C)the smaller the proportion of one's income spent on the product.
D)the smaller the number of substitute products available.

Question

Quizplus · Accepted Answer

The elasticity of demand for a product tends to be greater the more time consumers have to adjust to a price change, as they can find substitutes or alter consumption habits over time.

The Elasticity of Demand for a Product Is Likely to Be