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:

Capital-intensive Production

A production process that requires a higher proportion of capital, such as machinery and equipment, in comparison to labor, to produce goods and services.

School Attendance

The act of being present at an educational institution during scheduled classes or activities, often monitored for legal or policy requirements.

Microfinance

Financial services, including loans, savings, insurance, and training, provided to individuals or small businesses lacking access to traditional banking services.

Developing World

A term used to describe countries with lower levels of industrialization, lower standards of living, and often lower levels of human development indicators compared to developed countries.