Te time horizon being considered A good with many close substitutes is likely to

Question

Te time horizon being considered A good with many close substitutes is likely to have relatively substitutes If the price of the good rises. , demand, since consumers can easily choose to purchase one of the close elastic A good's price elasticity of demand depends in part on how ne Inelastic same, which one has the least elastic demand? e inelasticrelative to other goods. If the following goods are priced approximately the relative to other goods. If the following goods are priced approximately the O A heart valve for heart attack victims O Yacht The price elasticity of demand for a good also depends on how you define the good. Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elastic demand, and which will have demand that fails in between. Categories Most Elastic In Between Least Elastic Red bell peppers Food The price elasticity of demand is also affected by the given time horizon. Compared to the short-run demand for oil, the demand for oil in the long run will tend to be elastic Grade It Now Save & Continue Consinue without saving

Explanation / Answer

A good with many close substitutes is likely to have elastic demand.its because the more option they have , the more likely they are to switch if price changes.

A heart valve for heart attack victim is least elastic because it is of absolute necessity , irrespective of price changes.

Red bell peppers is most elastic because it is niché item

Vegetables , in between &

Food is least elastic because it is absolute necessity

Demand for oil is inelastic in short run but in long run its more elastic

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