Which of the following statements about price elasticity of demand is true?
A)It is greater than one if the percentage increase in the commodity's price is greater than the percentage decline in quantity demanded.
B)It is very small when good substitutes are readily available for the commodity.
C)It usually increases over time.
D)It is a positive number because price and quantity demanded move in the same direction.
E)It is higher for an entire group of related products than it is for a particular product in that group.

Question

Quizplus · Accepted Answer

Price elasticity of demand usually increases over time as consumers have more time to adjust their behavior and find substitutes.

Which of the Following Statements About Price Elasticity of Demand