Price Elasticity of Demand?

The price elasticity of demand for a good is 5. Which of the following would be an explanation for this?

A. The good is a necessity.

B. The good is broadly defined.

C. Expenditure on the good is a large portion of one's total income.

D. The time interval considered is short.

E. Expenditure on the good is a small portion of one's total income

1 Answer

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