If a Good Is a Necessity, It Has ________ Substitutes

question 91

Multiple Choice

If a good is a necessity, it has ________ substitutes and its demand is ________.

• A) poor; elastic
• B) many; elastic
• C) many; inelastic
• D) poor; inelastic
• E) many; precisely unit elastic

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Definitions:

Production

The process of creating goods or services by combining labor, machinery, and materials resources.

Returns to Scale

The rate at which output increases as inputs are increased proportionally.

Long-Run Average Total Cost

The average cost per unit of output when all input factors are variable, and economies of scale are fully exploited.

Production

The process of creating goods and services from various inputs like labor, knowledge, and raw materials.