The cost of a gizmo has gone up. Which of the following would indicate that there would be a good chance that this price increase would be met with an elastic response? The cost of a gizmo has gone up. Which of the following would indicate that there would be a good chance that this price increase would be met with an elastic response? (A) There are very few available substitutes for a gizmo. (B) Consumers consider gizmos to be a luxury item. (C) There is not much time for consumers to react to the price increase. (D) Gizmos represent a very small share of consumer spending.

The cost of a gizmo has gone up. Which of the following would indicate that there would be a good chance that this price increase would be met with an elastic response? The cost of a gizmo has gone up. Which of the following would indicate that there would be a good chance that this price increase would be met with an elastic response? (A) There are very few available substitutes for a gizmo. (B) Consumers consider gizmos to be a luxury item. (C) There is not much time for consumers to react to the price increase. (D) Gizmos represent a very small share of consumer spending.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 31CTQ: Economists define normal goods as having a positive income elasticity. We can divide normal goods...

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