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Price elasticity is higher for narrowly defined goods than for broadly defined goods
Ex:
Orange juice (High Elastic) (Many juice substitutes) (Narrow)
Drinks (inelastic) (Not many substitutes) (Broad)
Luxury Vs Necessity
Ex Cruise Vs Insulin
Price elasticity is higher for luxuries than for necessities
Long run = more options (Price elasticity is higher)
Short run = less options (Price elasticity is lower)
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