Asked by
morgan mitola
on Dec 11, 2024
Verified
The demand for a product is likely to be more elastic when
A) the share of the total budget spent on the product is small.
B) more complementary products are available.
C) the consumer has a short time to adjust to price changes.
D) more good substitutes for the product are available.
Complementary Products
Goods or services that are used together, where the use of one increases the value or demand for the other.
Good Substitutes
Products or services that can replace each other in use, offering consumers alternatives that fulfill the same need or function.
- Understand the concept of price elasticity of demand and its determinants.
- Identify factors that make demand more elastic or inelastic.
Verified Answer
AD
Learning Objectives
- Understand the concept of price elasticity of demand and its determinants.
- Identify factors that make demand more elastic or inelastic.