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Reading Comprehension: Application Questions

Which of the following products would not be affected by the link the author suggests between duration of price change and elasticity of demand?

Good work!

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Substitutions are not available for a product which has a monopoly on the market, and therefore this product would not be affected by an increase in price of any duration, because no alternatives are available.

Incorrect.

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This answer choice presumes that wealthy people are willing to pay any price for a luxury item, which is not necessarily the case.

Incorrect.

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The product in this answer choice may have been affordable despite its high price before the price increased; however, this does not mean that it remained affordable once the price increased. According to the passage, as time goes by consumers would move to substitutions.

Incorrect.

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The demand for a high quality product can still be affected by a long-term increase in price.

Incorrect.

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Just because the product is the only one available at a certain point, substitutions can still appear after the price increases.

a product popular for its extremely high quality
the only available product at the time of the increase in price
an item that was more expensive than its competition even before its price increased
a product which is copyrighted in such a way that it has a monopoly on the market
a luxury item popular among the wealthy