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Demand for a good will tend to be more elastic if it exhibits which of the following characteristics?
- a)It represents a small part of the consumer ’s income.
- b)The good has many substitutes available.
- c)It is a necessity (as opposed to a luxury).
- d)There is little time for the consumer to adjust to the price change.
Correct answer is option 'B'. Can you explain this answer?
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Demand for a good will tend to be more elastic if it exhibits which of...
Elasticity of demand refers to the responsiveness of the quantity demanded of a good or service to a change in its price. The more responsive the quantity demanded is to a change in price, the more elastic the demand is.
Characteristics that make demand more elastic:
Availability of substitutes
- If a good has many substitutes available, consumers can easily switch to a different product if the price of the original product increases. This makes the demand for the original product more elastic.
Price relative to income
- If a good represents a large part of a consumer's income, the demand for that good will be less elastic because consumers will be less likely to switch to a different product if the price of the original product increases.
Necessity vs. luxury
- The demand for a necessity is likely to be less elastic because consumers will still buy it regardless of the price. The demand for a luxury, on the other hand, is likely to be more elastic because consumers can easily cut back on luxury items if the price increases.
Time
- The more time consumers have to adjust to a price change, the more elastic the demand becomes. If there is little time for consumers to adjust, the demand will be less elastic.
Therefore, option B is the correct answer because a good with many substitutes available will have a more elastic demand.
Characteristics that make demand more elastic:
Availability of substitutes
- If a good has many substitutes available, consumers can easily switch to a different product if the price of the original product increases. This makes the demand for the original product more elastic.
Price relative to income
- If a good represents a large part of a consumer's income, the demand for that good will be less elastic because consumers will be less likely to switch to a different product if the price of the original product increases.
Necessity vs. luxury
- The demand for a necessity is likely to be less elastic because consumers will still buy it regardless of the price. The demand for a luxury, on the other hand, is likely to be more elastic because consumers can easily cut back on luxury items if the price increases.
Time
- The more time consumers have to adjust to a price change, the more elastic the demand becomes. If there is little time for consumers to adjust, the demand will be less elastic.
Therefore, option B is the correct answer because a good with many substitutes available will have a more elastic demand.
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Demand for a good will tend to be more elastic if it exhibits which of...
Option -B is the answer because for a elastic demanded good a small change in price will leads to greater change in quantity demand .With increase in price the consumer willmove the cheaper good
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Demand for a good will tend to be more elastic if it exhibits which of the following characteristics?a)It represents a small part of the consumer s income.b)The good has many substitutes available.c)It is a necessity (as opposed to a luxury).d)There is little time for the consumer to adjust to the price change.Correct answer is option 'B'. Can you explain this answer?
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Demand for a good will tend to be more elastic if it exhibits which of the following characteristics?a)It represents a small part of the consumer s income.b)The good has many substitutes available.c)It is a necessity (as opposed to a luxury).d)There is little time for the consumer to adjust to the price change.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Demand for a good will tend to be more elastic if it exhibits which of the following characteristics?a)It represents a small part of the consumer s income.b)The good has many substitutes available.c)It is a necessity (as opposed to a luxury).d)There is little time for the consumer to adjust to the price change.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Demand for a good will tend to be more elastic if it exhibits which of the following characteristics?a)It represents a small part of the consumer s income.b)The good has many substitutes available.c)It is a necessity (as opposed to a luxury).d)There is little time for the consumer to adjust to the price change.Correct answer is option 'B'. Can you explain this answer?.
Demand for a good will tend to be more elastic if it exhibits which of the following characteristics?a)It represents a small part of the consumer s income.b)The good has many substitutes available.c)It is a necessity (as opposed to a luxury).d)There is little time for the consumer to adjust to the price change.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Demand for a good will tend to be more elastic if it exhibits which of the following characteristics?a)It represents a small part of the consumer s income.b)The good has many substitutes available.c)It is a necessity (as opposed to a luxury).d)There is little time for the consumer to adjust to the price change.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Demand for a good will tend to be more elastic if it exhibits which of the following characteristics?a)It represents a small part of the consumer s income.b)The good has many substitutes available.c)It is a necessity (as opposed to a luxury).d)There is little time for the consumer to adjust to the price change.Correct answer is option 'B'. Can you explain this answer?.
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