"The Fewer the Number of Substitutes for a Good, the More

question 10

Essay

"The fewer the number of substitutes for a good, the more elastic the demand for that good." Is the previous statement true or false?

---

Definitions:

Gross Profit

The difference between the revenue from sales and the cost of goods sold, before deducting overheads, interest, and taxes.

Cost of Goods Sold

Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold by a company, including materials and labor.

Perpetual Inventory System

A perpetual inventory system is a method of tracking inventory in real-time, with continuous updates to inventory records as sales and purchases occur.

Gross Method

An accounting practice where discounts for prompt payment are recorded as reductions of expense if taken.