Respuesta :
Answer:
Relatively elastic-
a) Goods that have a large number of available substitutes.(b) Consumers have a long time to adjust to a change in price.
Relatively inesltic:
c) Goods that are necessities.(d) Goods on which consumers spend a small share of their budget.(e) Goods that are narrowly defined
Explanation:
Elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Demand is relatively inelastic if a small change in price has little or no effect on quantity demanded.
Demand is relatively elastic if a small change in price has a greater effect on the quantity demanded.
A good that has many substitutes is relatively elastic. If the price of the good increases, consumers would shift to the consumption of a substituite.
If consumers have a long time to adjust to price change, they have longer time to find substitutes for the good. Therefore demand is relatively elastic.
Goods that are necessities have a relatively inelastic demand. For example, let assume the price of a bottle of water increases, because water is a necessity, demand would not change.
When a good is a part of a budget, demand is relatively inelastic. For example, let's assume a person earns $500,000. The price of a bottle of water rises from $1 to $1.50. The demand for the bottle of water would not change as a result of the increase in price. So demand is relatively inelastic because it represents a small part of the budget.
Goods that are narrowly defined are relatively inelastic because there would not be suitable substitutes for the good.
I hope my answer helps you
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