Which of the following factors will make the demand for a product ...

[gonzo233]

Which of the following factors will make the demand for a product more elastic?
 
  A) The product has no close substitutes.
  B) A very small proportion of income is spent on the good.
  C) A long time period has elapsed since the product's price changed.
  D) The change in the product's price was unexpected.

Question 2

The price of gasoline rises by 33 percent to 3.50 a gallon and stays at that price for the next two years. The quantity of gasoline demanded two years from now will be
 
  A) the same as one month after the price hike.
  B) greater than one month after the price hike.
  C) less than one month after the price hike.
  D) the same as it would be if the price hike had never occurred.

[IRincones]

Answer to Question 1

C

Answer to Question 2

C

[gonzo233]

TYSM

[okolip]

Excellent