Suppose Two Goods Are Perfect Substitutes

question 335

Multiple Choice

Suppose two goods are perfect substitutes. The price elasticity of demand of one of the goods is

• A) 0.
• B) 1.
• C) 1000.
• D) infinity.

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Definitions:

Relative Approach

A method of evaluation or analysis that is based on comparisons or relationships between objects, situations, or concepts rather than absolute measures.

Desired Performance

The specific level of output or outcome that an individual or organization aims to achieve.

Actual Performance

The real, observable output or results that an individual or organization achieves, as opposed to expected or planned outcomes.

Exceeded The Standard

Surpassing the established benchmarks or expectations set for performance or quality.