Economics 0455 · IGCSE · Price elasticity of demand (PED)

Price elasticity of demand (PED) — practice question

What is the most probable reason for a product to have a price elasticity of demand above one?

  • AThe product has a close substitute.
  • BThe product is a habit-forming good.
  • CThe product is a necessity.
  • DThe product requires only a small proportion of consumer income.

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