The answer is A. Moving pallets
a house, duh, clothing can be hung and stored, potato chips are bagged, a magazine is almost useless, but a house needs plants trimmmed and rooms cleaned and taking care of bugs and such
Answer:
The correct answer is option D.
Explanation:
The price elasticity of demand can be defined as the degree of responsiveness of quantity demanded of a commodity to a change in the price of the commodity.
The price elasticity of demand depends on several factors including
- Availability of close substitutes
- The proportion of income that is spent on the good
- Amount of time consumers have to adapt to the price change
If there are cheaper substitutes available in the market then the demand will be relatively elastic. Similarly, if a small proportion of income is being spent on the good than the demand will be relatively inelastic. Demand in a short period will be inelastic. Though elasticity of demand is not affected by the number of goods available.
Because the CPI is based on a fixed basket of goods, the introduction of new goods and services in the economy causes the CPI to overestimate the cost of living. This is so because when a new good is introduced it gives consumers greater choice thus reducing the amount they must spend to maintain their standard of living.