The price elasticity of demand for mobile phones
A)will be higher if there is an improvement in the production technology.
B)will be lower if consumers perceive mobile phones to be a necessity.
C)is computed as the percentage change in the price of mobile phones divided by the percentage change in quantity of mobile phones.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Price elasticity of demand is lower for necessities because consumers are less sensitive to price changes.

The Price Elasticity of Demand for Mobile Phones