Question

Back to Assignment Attempts: Do No Harm: 13 4. Determinants of the price elasticity of demand Aa Aa A good with many close substitutes is likely to have relatively demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good rises. Price elasticity of demand for a good depends on the price of the good relative to the consumers' incomes. Of the following goods, which one has the most elastic demand? O Salt Lighter fluid Computer Fish food O O elastic in the short run Other things being equal, the demand for natural gas will tend to be than in the long run. no more or less more less QNA 3.16 2004-2016 Ap . All rights reserved 2013 Cengage Learning except as noted. All rights reserved. Grade It Now Save & Continue Continue without saving

Answer 1

1)

High elasticity of demand:

Too many substitutes make the demand more elastic.

2)

Answer: (B)

lighter fluid is not necessity , thus its demand is most elastic.

3)

Less elastic

since over the short run, there would be few substitutes, so there will be less elastic demand.