For a particular good,a 5 percent increase in price causes a 15 percent decrease in quantity demanded.Which of the following statements is most likely applicable to this good?
A)There are many substitutes for this good.
B)The good is a necessity.
C)The market for the good is broadly defined.
D)The relevant time horizon is short.

Question

Quizplus · Accepted Answer

The good is likely to have many substitutes, as the large decrease in quantity demanded relative to the price increase indicates that consumers can easily switch to other goods.

For a Particular Good,a 5 Percent Increase in Price Causes