When Numerous but Imperfect Substitutes Exist for a Good, the Demand

question 324

Multiple Choice

When numerous but imperfect substitutes exist for a good, the demand for the good will tend to be

• A) inelastic.
• B) elastic.
• C) unitary.
• D) perfectly elastic.

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Definitions:

Certificate of Deposit

A savings certificate entitling the bearer to receive interest, which has a fixed maturity date and specified fixed interest rate.

Acknowledgement

The act of recognizing or admitting the truth, validity, or legality of something.

Maker

A person who makes or executes an instrument. The signer of an instrument.

Standard-Form Note

A preprinted agreement where terms and conditions are set by one party, with little or no negotiation with the other party, often used in financial transactions.