Because Many Good Substitutes Exist for a Competitive Firm's Product

question 642

Multiple Choice

Because many good substitutes exist for a competitive firm's product, the demand curve that it faces is

• A)unit-elastic.
• B)perfectly inelastic.
• C)perfectly elastic.
• D)inelastic only over a certain region.

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Definitions:

Linear Equation

An equation between two variables that produces a straight line when graphed.

Solve

To find an answer to a problem or the solution to an equation.

Equation

A mathematical statement that asserts the equality of two expressions, usually shown by the symbol "=".

Solve

The process of finding the value of variables that make a mathematical statement true.