If There Are Very Few Substitutes for a Product, Then

question 169

Multiple Choice

If there are very few substitutes for a product, then an increase in its price causes

• A)a relatively large increase in quantity demanded.
• B)a relatively large decrease in quantity demanded.
• C)no change in quantity demanded.
• D)a relatively small increase in quantity demanded.
• E)a relatively small decrease in quantity demanded.

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Definitions:

Book Value

The net value of a company's assets found on its balance sheet, calculated as total assets minus intangible assets and liabilities.

Accumulated Depreciation

The total depreciation charged over an asset's life, reducing its book value.

Trade-In Allowance

The amount of money a dealer subtracts from the price of a new item when you give them your old item as part of the payment.

Book Value

The value of an asset as it appears on the balance sheet, calculated by subtracting any associated depreciation or amortization from its original cost.