For a particular good,an 8 percent increase in price causes a 12 percent decrease in quantity demanded.Which of the following statements is most likely applicable to this good?
A)There are no close 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 long.

Question

Quizplus · Accepted Answer

The good is likely to be elastic since the percentage decrease in quantity demanded is greater than the percentage increase in price. Over a longer time horizon, consumers have more time to find substitutes or adjust their behavior, making demand more elastic.

For a Particular Good,an 8 Percent Increase in Price Causes