Question

Which of the following would be correct of the demand for a commodity is elastic?

• A. the greater the number of good substitutes available
• B. the longer the period gf time considered
• C. the greater the proportion of income spent on the commodity
• D. all the above

Answer 1

The correct option is D all the above

A commodity has a relatively elastic demand when the proportionate change in quantity demand is greater than the proportionate change in price, then the following would be correct of the demand for a commodity is elastic:a) the greater the number of good substitutes available

b) the longer the period of time considered

c) the greater the proportion of income spent on the commodity