Asked by
Emili Ramirez
on Nov 17, 2024
Verified
Goods with close substitutes tend to have more elastic demands than do goods without close substitutes.
Elastic Demands
A situation where the demand for a good or service significantly changes in response to changes in its price.
Close Substitutes
Products or services that can easily replace each other in the eyes of the consumer, offering similar benefits and functionalities.
- Recognize the determinants of price elasticity, including the availability of substitutes and the necessity of the product.
Verified Answer
MV
Learning Objectives
- Recognize the determinants of price elasticity, including the availability of substitutes and the necessity of the product.
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