Asked by
Katie Lyons
on Nov 25, 2024
Verified
The narrower the definition of a product,
A) the larger the number of substitutes and the greater the price elasticity of demand.
B) the smaller the number of substitutes and the greater the price elasticity of demand.
C) the larger the number of substitutes and the smaller the price elasticity of demand.
D) the smaller the number of substitutes and the smaller the price elasticity of demand.
Price Elasticity
The measure of how responsive the quantity demanded or supplied of a good or service is to a change in its price.
Substitutes
Goods or services that can be used in place of each other, where the use of one increases the likelihood of the use of the other decreasing.
- Explain how the definition of a product affects its elasticity of demand.
Verified Answer
FZ
Learning Objectives
- Explain how the definition of a product affects its elasticity of demand.