If a Good Is a Necessity with Few Substitutes,all Others

question 164

Multiple Choice

If a good is a necessity with few substitutes,all others things equal,then demand will tend to:

• A)be more price-elastic.
• B)be less price-elastic.
• C)have price elasticity equal to 1.
• D)be the same as that of a luxury good.

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Definitions:

Purchase Cost

The total expense incurred to acquire an asset or service, including the price and additional charges.

Target Firm

A company that is the focus of a takeover or acquisition attempt by another company.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

Co-Owned Entity

A business or property ownership arrangement where two or more parties hold a share or interest.