The price elasticity of demand is smaller: A. the fewer substitutes for the product. B. the more time that has passed since the price change. C. for a specific product, such as a Ford Mustang, than for a wider category of product, such as automobiles. D. for a luxury than for a necessity.
The price elasticity of demand is smaller: A. the fewer substitutes for the product. B. the more time that has passed since the price change. C. for a specific product, such as a Ford Mustang, than for a wider category of product, such as automobiles. D. for a luxury than for a necessity.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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M1

Transcribed Image Text:The price elasticity of demand is smaller:
A. the fewer substitutes for the product.
B. the more time that has passed since
the price change.
C. for a specific product, such as a Ford
Mustang, than for a wider category of
product, such as automobiles.
D. for a luxury than for a necessity.
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