Consider the following list containing several price elasticity of demand determinants: The availability of close substitutes Whether a good is a luxury or necessity How broadly the market is defined The time horizon under consideration A good in the presence of many close substitutes is predicted to have relatively w demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good were to increase. The price elasticity of demand of a good depends in part on its relative necessity in comparison to other goods. Assume the following goods all have approximately the same price. Which of the goods has the most elastic demand? () Designer clothing () A liver for people on the transplant waiting list The price elasticity of demand for a good also depends on how the good is defined. Using the following table, organize the goods by indicating which you predict to have the most elastic demand, the least elastic demand, and the elasticity of demand that falis somewhere in between. Categories Most Elastic In Between Least Elastic Strawberries 0 O A Produce O O ) Food O The price elasticity of demand of a good is also impacted by the defined time horizon. Compared to the short-run demand for oil, the demand for oil in the long run will tend to be w glastic. A good in the presence of many close substitutes is predicted to have relatively w demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good were to increase. elastic The price elasticity of demand of a good depends in part on its relative necessity inelastic fison to other goods. Assume the following goeds all have approximately the same price. Which of the goods has the most elastic demana Food O O O more The price elasticity of demand of a good is also impacted by the defined time horizon. no more, nor less, Compared to the short-run demand for gil, the demand for oil in the long run will tend to be w elastic