Decrease in quantity demanded

Reference no: EM13685954

For a particular good, a ten percent increase in price causes a three percent decrease in quantity demanded. Which of the following statements is most probable applicable to this good?

1. The good is a luxury.

2. The relevant time horizon is short.

3. The market for the good is narrowly defined.

4. There are many close substitutes for this good.

Reference no: EM13685954

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