The demand for a product is more inelastic: the lower the average income of consumers. the poorer the available substitutes. the longer the time period covered. the better the available substitutes.
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- The more time consumers have to adjust to a change in price: the smaller will be the price elasticity of demand. the greater will be the price elasticity of demand. the more likely the product is a normal good. the more likely the product is an inferior good.The price elasticity of demand increases with the length of the period considered because consumers' incomes will increase over time the demand curve will shift outward as time passes all prices will increase over time consumers will be better able to find substitutes.The price elasticity of demand increases with the length of the period considered because A) consumers will be better able to find substitutes. B) the demand curve will shift outward as time passes. 09 all prices will increase over time. C): D) consumers' incomes will increase over time.
- Which of the following is most likely to have a low price elasticity of demand? A good that is very expensive. A good with no close substitutes. A good that most people consider a luxury. All are equally likely to have a low price elasticity of demand.The demand function of a certain commodity is X = 30 2P. When the price P changes from 5 to 10, please calculate the price elasticity of demand e. (a) 0.1 (b) 0.2 (c) 0.3 (d ) 0.4 (e) 0.5 (f) 2The demand for a product is likely to be more elastic the less the essential nature of the good. the shorter the time the consumer has to adjust to price changes. the fewer the number of good substitutes. the lower the price of the good.
- if the demand for a good is extremely inelastic, a large increase in the cost of supplying it will a) raise it's priced very little, but increase the total dollar spent to purchase it b) raise its price very little and decrease the total dollar spent to purchase it c) raise its price substantially and increase the total dollar spent to purchase it d) raise its price substantially, but decrease the total dollar spent to purchase itEvaluate the behavior of consumers in terms of the demand for productsWhich of the following would NOT change demand? * a)information about the product's health effects b)the price of related products c)the income of the consumers d)the price of the product
- Demand will be more inelastic when the time the consumer has to adjust to price changes is short. the price of the good is high. the number of good substitutes is large. the good is narrowly definedThe elasticity of demand is used to determine if a change in price results in a shortage or a surplus. find the market equilibrium. determine if consumers will or will not buy a product. measure how responsive consumers are to a change in price. determine in what direction the demand curve shifts if income changes.The demand for Woobles is unit elastic. When Woobles are priced at $20.00, 10 units are sold. If the price is increased to $40, how many units of Woobles will be sold?