Price Elasticity of Demand Is Lower for Goods with Few

question 112

True/False

Price elasticity of demand is lower for goods with few close substitutes.

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Definitions:

Marginal-Cost-Marginal-Benefit Rule

The marginal-cost-marginal-benefit rule states that optimal decision-making occurs when the marginal cost of an action equals its marginal benefit, ensuring efficient resource allocation.

Optimal Project Size

The most efficient scale of a project, considering factors like cost, resources, and expected benefits, to achieve the best possible outcome.

Marginal Costs

The cost uplift realized by the manufacture of an extra unit of a product or service.

Marginal Benefits

The supplementary enjoyment or usefulness gained by consuming or producing another unit of a good or service.