If a 10 percent increase in price causes a 3 percent decrease in quantity demanded, Which of the following reasons may explain the observed elasticity? Select one: a. Total expenditure on this good occupies a large share of the consumer's budget. b. There are many close substitutes for this good. c. The demand curve has a shallow slope d. The good is a luxury. e. The time horizon is short
If a 10 percent increase in price causes a 3 percent decrease in quantity demanded, Which of the following reasons may explain the observed elasticity? Select one: a. Total expenditure on this good occupies a large share of the consumer's budget. b. There are many close substitutes for this good. c. The demand curve has a shallow slope d. The good is a luxury. e. The time horizon is short
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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If a 10 percent increase in
Select one:
a. Total expenditure on this good occupies a large share of the consumer's budget.
b. There are many close substitutes for this good.
c. The
d. The good is a luxury.
e. The time horizon is short.
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