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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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