The price elasticity of demand coefficient for a good will be lower in all of the following cases EXCEPT Select one: a. If the good is luxury b. If a small portion of the budget will be spent on the good. c. In the short run than in the long run. d. If there are few or no substitutes.
The price elasticity of demand coefficient for a good will be lower in all of the following cases EXCEPT Select one: a. If the good is luxury b. If a small portion of the budget will be spent on the good. c. In the short run than in the long run. d. If there are few or no substitutes.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Select one:
a. If the good is luxury
b. If a small portion of the budget will be spent on the good.
c. In the short run than in the long run.
d. If there are few or no substitutes.
For a normal good with a downward sloping demand curve:
Select one:
a. The price elasticity of demand is negative; the income elasticity of demand is negative.
b. The price elasticity of demand is negative; the income elasticity of demand is positive.
c. The price elasticity of demand is positive; the income elasticity of demand is negative.
d. The price elasticity of demand is positive; the income elasticity of demand is positive.
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