Goods with Close Substitutes Tend to Have More Elastic Demands

question 59

True/False

Goods with close substitutes tend to have more elastic demands than do goods without close substitutes.

---

Definitions:

Service Company

A business that provides intangible products or services to customers, as opposed to selling physical goods.

Flexible Budget

An elastic budget that varies according to fluctuations in volume or operational activities.

Revenue

The total income generated by the sale of goods or services before any expenses are deducted.

Shipping Container

A large container designed for transport and storage of goods by various modes of transportation, including ship, rail, and truck.