Which of the following generalizations is not correct? The larger an item is in one's budget, the greater the price elasticity of demand. The price elasticity of demand is greater for necessities than it is for luxuries. The larger the number of close substitutes available, the greater will be the price elasticity of demand for a particular product. The price elasticity of demand is greater the longer the time period under consideration.
Which of the following generalizations is not correct? The larger an item is in one's budget, the greater the price elasticity of demand. The price elasticity of demand is greater for necessities than it is for luxuries. The larger the number of close substitutes available, the greater will be the price elasticity of demand for a particular product. The price elasticity of demand is greater the longer the time period under consideration.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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
Transcribed Image Text:Which of the following generalizations is not correct?
The larger an item is in one's budget, the greater the price elasticity of demand.
The price elasticity of demand is greater for necessities than it is for luxuries.
The larger the number of close substitutes available, the greater will be the price elasticity of demand for a particular product.
The price elasticity of demand is greater the longer the time period under consideration.
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