PRC-3 · Chapter 11 · Question 35 of 57
Which of the following scenarios would result in a product having a highly elastic demand?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The product takes up a massive portion of a consumer's monthly income
Explanation
Goods that consume a large percentage of income force consumers to be very sensitive to price changes, making their demand highly elastic.
More Elasticity of Demand and Supply MCQs
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