Demand is likely to be price elastic if: 1. the buyers can use normal inflation to explain the price increase 2. buyers do not readily notice price changes 3. buyers think a higher price is justified by quality differences 4. there are many alternatives and direct substitutes for the product 5. buyers are slow to change their purchasing habits
Demand is likely to be price elastic if: 1. the buyers can use normal inflation to explain the price increase 2. buyers do not readily notice price changes 3. buyers think a higher price is justified by quality differences 4. there are many alternatives and direct substitutes for the product 5. buyers are slow to change their purchasing habits
Chapter3: Market Demand And Supply
Section: Chapter Questions
Problem 2SQ: Which of the following would not cause market demand for a normal good to decline? a. An increase in...
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1. the buyers can use normal inflation to explain the price increase
2. buyers do not readily notice price changes
3. buyers think a higher price is justified by quality differences
4. there are many alternatives and direct substitutes for the product
5. buyers are slow to change their purchasing habits
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