If a Good Is a Necessity with Few Substitutes, Then

question 236

Multiple Choice

If a good is a necessity with few substitutes, then demand will tend to:

• A) be more price-elastic.
• B) be more price-inelastic.
• C) have price elasticity equal to 1.
• D) be the same as that of a luxury good.

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Definitions:

Product Crises

refer to situations where products are found to be harmful or defective, leading to public backlash, legal actions, and a need for crisis management from the company.

Litigation Crises

Situations where an organization faces significant legal challenges that can impact its reputation and financial stability.

Crisis Impact

The effect or aftermath of a significant adverse event, often challenging the stability, reputation, or operations of an entity.

Faulty Airbags

Airbag systems in vehicles that have defects which can cause them not to deploy correctly in the event of a crash, potentially leading to injury or death.