Demand for a good becomes more elastic as:
a. the number of substitutes available declines.
b. the time period under consideration becomes shorter.
c. a good makes up a larger percentage of a consumer's budget.
d. a good makes up a smaller percentage of a consumer's budget.
e. the producer has more time to respond to price changes.
Question 2
A budget line shows:
a. the combinations of two goods that yield the same level of utility.
b. the relationship between the price and the quantity supplied of a good or service.
c. the combinations of two goods that can be purchased at given prices with a given level of income.
d. the relationship between the price and the quantity demanded of a good or service.
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Elastic Rebound
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