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QuizMultiple Choice

Study Guide and Quiz

Question 1 • GA-Introduction to Business and Technology A

If consumers start to believe they need a product such as medication, what is likely to happen?

Answer
A
The demand becomes less elastic.
B
The demand becomes more elastic.
C
The supply decreases.
D
The price decreases.

Explanation

When consumers believe a product is necessary, such as medication, they are less likely to reduce how much they buy when its price rises. That means quantity demanded responds less to price changes, so demand becomes less elastic. The best answer is A, “The demand becomes less elastic.”

AI-written and checked against the verified answer.

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