The cost of a gizmo has gone up. Which of the following would indicate that there would be a good chance that this price increase would be met with an elastic response? The cost of a gizmo has gone up. Which of the following would indicate that there would be a good chance that this price increase would be met with an elastic response? (A) There are very few available substitutes for a gizmo. (B) Consumers consider gizmos to be a luxury item. (C) There is not much time for consumers to react to the price increase. (D) Gizmos represent a very small share of consumer spending.

The cost of a gizmo has gone up. Which of the following would indicate that there would be a good chance that this price increase would be met with an elastic response? The cost of a gizmo has gone up. Which of the following would indicate that there would be a good chance that this price increase would be met with an elastic response? (A) There are very few available substitutes for a gizmo. (B) Consumers consider gizmos to be a luxury item. (C) There is not much time for consumers to react to the price increase. (D) Gizmos represent a very small share of consumer spending.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The cost of a gizmo has gone up. Which of the following would indicate that there would be a
good chance that this price increase would be met with an elastic response? The cost of a
gizmo has gone up. Which of the following would indicate that there would be a good chance
that this price increase would be met with an elastic response?
(A) There are very few available substitutes for a gizmo.
(B) Consumers consider gizmos to be a luxury item.
(C) There is not much time for consumers to react to the price increase.
(D) Gizmos represent a very small share of consumer spending.

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