The more narrowly defined a good is, the more elastic the demand for the good will tend to be, ceteris paribus.
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The demand for a product is more elastic the More broadly defined the product Higher the price of the product is Less substitutes available for that product Smaller the share of a consumer's income the item represents. None of the above
Oluwadamilola A.
Consider some determinants of the price elasticity of demand: The availability of close substitutes Whether the good is a necessity or luxury How broadly you define the market The time horizon being considered A good with many close substitutes is likely to have relatively elastic demand if the price of the good rises, since consumers can easily choose to purchase one of the close substitutes. A good's price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are priced approximately the same, which one has the most elastic demand? Sports car Amputation procedures for diabetes sufferers The price elasticity of demand for a good also depends on how you define the good. Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elastic demand, and which will have demand that falls in between:
Azat N.
Andrew D.
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