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Other Factors Held Constant, If There Are Few Close Substitutes

question 58

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Other factors held constant, if there are few close substitutes for a good, demand is more elastic for it.


Definitions:

Equilibrium Wage

The rate of wages where the supply of workers equals the demand for workers.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, while holding other inputs constant.

Marginal Product

The additional output that is produced by employing one more unit of a particular input, holding other inputs constant.

Market Price

The current price at which an asset or service can be bought or sold.

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