Goods with Close Substitutes Tend to Have More Elastic Demands

question 59

True/False

Goods with close substitutes tend to have more elastic demands than do goods without close substitutes.

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Definitions:

Chemical Energy

The potential of a chemical substance to undergo a transformation through a chemical reaction or to transform other chemical substances.

Mechanical Energy

The sum of potential and kinetic energy in physical systems, often involved in performing work or causing motion.

Kinetic Energy

The energy that an object possesses due to its motion, which is dependent on the mass of the object and the square of its velocity.

Heat Energy

Energy that results from the random movement of atoms, ions, or molecules; the greater the amount of heat energy in an object, the higher the object’s temperature.