tb mc qu. 06 - 204 which of the following factors... which of the following factors will make the demand for…

tb mc qu. 06 - 204 which of the following factors... which of the following factors will make the demand for a product relatively elastic? multiple choice purchases of the good require a small portion of consumers budgets. there are few substitutes. the time interval considered is long. the good is considered a necessity.

tb mc qu. 06 - 204 which of the following factors... which of the following factors will make the demand for a product relatively elastic? multiple choice purchases of the good require a small portion of consumers budgets. there are few substitutes. the time interval considered is long. the good is considered a necessity.

Answer

Brief Explanations:

When the time interval considered is long, consumers have more time to adjust their consumption patterns, find substitutes, etc. This makes the demand for a product more responsive to price - changes, i.e., relatively elastic. When purchases are a small portion of the budget, demand is inelastic as price - changes don't significantly affect overall spending. Few substitutes make demand inelastic as consumers have limited alternatives. Necessities also have inelastic demand as consumers need them regardless of price changes.

Answer:

C. The time interval considered is long.