If a Good Has Many Close Substitutes, It Is Likely

question 20

Multiple Choice

If a good has many close substitutes, it is likely that the _____.

• A) price elasticity of the good is highly inelastic
• B) demand curve for the good is upward sloping
• C) quantity demanded of the good is very sensitive to changes in price
• D) demand for the good will increase in proportion to an increase in income

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Definitions:

High Pay

A level of remuneration that is significantly above the average or expected salary for a job or position.

Perform

To carry out, execute, or conduct (an action or task).

Intrinsic Rewards

Satisfaction a person derives from the activity itself, rather than from any external rewards.

Extrinsic Rewards

Benefits provided by external factors, such as money, grades, or awards, which motivate individuals to perform tasks.