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Demand for a good will tend to be more inelastic if it exhibits the following characteristics — (a) The good has many substitutes (b) The good is a luxury (as opposed to a necessity) (c) The good is a small part of the consumer’s income (d) There is a great deal of time for the consumer to adjust to the change in prices |
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Answer» (c) The good is a small part of the consumer’s income |
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