Author Question: If people have more time to adjust to a price change, the price elasticity of demand for that good ... (Read 111 times)

geoffrey · **on:** Jul 1, 2018

If people have more time to adjust to a price change, the price elasticity of demand for that good is likely to
a. increase
b. decrease
c. fall to zero
d. become equal to -1
e. remain unchanged

Question 2

Which of the following tends to make demand for a good more elastic?
a. A reduction in the number of substitutes for the good.
b. Consumers have a long time to adjust to a price change.
c. The amount spent on the good is a small proportion of the consumer's budget.
d. The good is broadly defined.
e. The good is a necessity.