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Scarcity Is Determined by the Existence of Bad Alternatives

question 99

True/False

Scarcity is determined by the existence of bad alternatives.


Definitions:

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in the product's price.

Total Revenue

The gross income a corporation achieves by trading products or delivering services across a certain span of time.

Elastic Demand

A situation in which the demand for a product is sensitive to price changes, meaning a small change in price leads to a larger change in quantity demanded.

Price Elasticity

An indicator that measures the impact on the quantity of a good demanded when there is a change in its price level.

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