When a Good Has Many Close Substitutes Available, It Is

question 80

Multiple Choice

When a good has many close substitutes available, it is likely to be:

• A) less price elastic than a good without close substitutes available.
• B) more price elastic than a good with many complement goods available.
• C) less price elastic than a good with many complement goods available.
• D) more price elastic than a good without close substitutes available.

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Definitions:

Real Estate Sales

Transactions involving the transfer of ownership rights in property or land from one party to another, typically facilitated by agents or brokers.

Contra-Asset Account

A contra-asset account is an account used in a ledger to reduce the value of a related account. It has a credit balance and is used to adjust the value of an asset account to its net value.

Consignment-In

A transaction arrangement where goods are placed in the care of another party to sell, but ownership and title remain with the supplier until sale.

Credit Balance

A situation where the total credits in an account exceed the total debits, often reflecting a company's liability or revenue.