If the price of milk rises, when is the price elasticity of demand likely to be the lowest? If] immediately after the price increase '3' three months after the price increase one month after the price increase If] one year after the price increase Suppose that Jane enjoys Diet Coke so much that she consumes one can every day. Although she enjoys gourmet cheese, she consumes it sporadically. If the price of Diet Coke rises+ Jane decreases her consumption by only a very small amount. But if the price of gourmet cheese rises, Jane decreases her consumption by a lot. These examples illustrate the importance of If] a necessity versus a luxury in determining the price elasticity of demand. CI the time horizon in determining the price elasticity of demand. If] the availability of close substitutes in determining the price elasticity of demand. If] the denition of a market in determining the price elasticity of demand