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Rainbow [258]
3 years ago
14

For a particular good, a 10 percent increase in price causes a 3 percent decrease in quantity demanded. Which of the following s

tatements is most likely applicable to this good?
Answer:

a. The good is a luxury.

b. There are many close substitutes for this good.

c. The market for the good is narrowly defined.

d. The relevant time horizon is short.
Business
1 answer:
SCORPION-xisa [38]3 years ago
7 0

Answer:

The correct answer is letter "D": The relevant time horizon is short.

Explanation:

Time horizon is the length of time you can part with your money before you need it again. If you have a long time horizon, there are more opportunities to make a profit out of an investment  but if the time horizon is short there are more possibilities to end up with losses out of an investment. In other words, <em>the longer the time horizon the most likely to profit and the shorter the time horizon the most likely to end with losses</em>.

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