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Under which of the following conditions will your demand tend to be more elastic? Choose one or more: A. in the short run B. in the long run C. when the price is a large portion of your income D. when the price is a small portion of your income E. when many substitutes are available F. when few substitutes are available G. when there are many competing firms selling similar goods

User Dan Nagle
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Answer:

B. in the long run

C. when the price is a large portion of your income

E. when many substitutes are available

G. when there are many competing firms selling similar goods

Step-by-step explanation:

Elasticity of demand is the degree of responsiveness of change in quantity demand of a product if there is a change in price of the product.

The demand for a product is somewhat inelastic in the short run, but in the long run, demand is more elastic.

The reason is that consumers need more time to respond and adjust to the use of certain products.

Also, when the price is a large portion of your income, price becomes more elastic. The reason is that, an increase in price leads to a decrease in quantity demand.

When many substitutes are available, an increase in price will cause consumers to shift their demand for the substitute.

When there are many competing firms selling similar goods demand for a product becomes more elastic

User Ghilas BELHADJ
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