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For a Particular Good, a 12 Percent Increase in Price

Question 143

Multiple Choice

For a particular good, a 12 percent increase in price causes a 3 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?


A) There are many substitutes for this good.
B) The good is a necessity.
C) The market for the good is narrowly defined.
D) The relevant time horizon is long.

Correct Answer:

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