When Many Substitutes Exist for a Good, Demand Will Be

question 176

Multiple Choice

When many substitutes exist for a good, demand will be

• A) elastic.
• B) unit-elastic.
• C) inelastic.
• D) perfectly unit-elastic.

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Definitions:

Semiannual Interest

The payment of interest on a loan or bond twice a year.

Bond Interest Expense

The cost incurred by an issuer of bonds for the interest payments made to bondholders.

Cash

Liquid assets held by a company or person, used for transactions or as a store of value.

Maturity Date

The date on which a financial obligation must be repaid or settled in full.