Question

Consider the statements regarding elasticity. Select the correct term in each:

 

1) Over longer periods of time, demand tends to be more elastic, less elastic, or perfectly inelastic.

2) With fewer substitutes, demand tends to be perfectly inelastic, less elastic, or more elastic.

3) Demand for an item that uses a large portion of your budget tends to be more elastic, less elastic, or perfectly inelastic.

4) Demand for a luxury item tends to be more elastic, less elastic, or perfectly inelastic.