Economics · Elasticity of Demand
Regarding the various determinants that influence the price elasticity of demand, consider the following statements: A. The ready availability of close substitutes makes demand for a product more elastic as consumers can easily switch items. B. Necessities typically exhibit inelastic demand because consumers continue to buy them even if the price increases. C. Demand tends to be less elastic over the short term compared to the long term as consumers have limited immediate alternatives. D. The broader the market definition, the more elastic the demand tends to be compared to narrowly defined markets. Which of the following statements are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A, C and D Only
- 2B, C and D Only
- 3A, B and D Only
- 4A, B and C Only✓
Correct answer
A, B and C Only
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