For a particular good,a 10 percent increase in price causes a 15 percent decrease in quantity demanded.Which of the following statements is most likely applicable to this good?
A) There are no close substitutes for this good.
B) The good is a necessity.
C) The market for the good is broadly defined.
D) The relevant time horizon is long.

Question

Quizplus · Accepted Answer

A long time horizon allows consumers to adjust their behavior, leading to a more elastic demand, as indicated by the greater percentage decrease in quantity demanded compared to the percentage increase in price.

For a Particular Good,a 10 Percent Increase in Price Causes