Identify the factor which generally keeps the price elasticity of demand for a good low:
A. Variety of uses for that good.
B. Its low price.
C. Close substitutes for that good.
D. High proportion of the consumer’s income spent on it.
Answer:B
Identify the factor which generally keeps the price elasticity of demand for a good low:
A. Variety of uses for that good. B. Its low price. C. Close substitutes for that good. D. High proportion of the consumer’s income spent on it.