If the Demand for a Good Is Highly Elastic, That

question 67

Multiple Choice

If the demand for a good is highly elastic, that good is likely to have:

• A)many close complements.
• B)few close complements.
• C)many close substitutes.
• D)few close substitutes.

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Definitions:

Tax

An obligatory fiscal contribution or another kind of tax levied on an individual by a government authority to support government budgets and various public spending.

Price Paid

The amount of money that is exchanged for a good or service.

Sellers

Individuals or entities that offer goods or services in exchange for payment or other compensation.

Rent Control

A government policy or regulation that sets a maximum price landlords can charge for rent, aimed at making housing more affordable.