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      Question

      The price elasticity of demand for a product is likely

      to be higher when:
      A The product is a necessity Correct Answer Incorrect Answer
      B The product has few substitutes Correct Answer Incorrect Answer
      C The time period considered is short Correct Answer Incorrect Answer
      D The product has many close substitutes Correct Answer Incorrect Answer

      Solution

      Explanation: When many substitutes are available, consumers can easily switch, making demand more elastic.

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