Goods with Many Close Substitutes Tend to Have

question 39

Multiple Choice

Goods with many close substitutes tend to have

• A)more elastic demands.
• B)less elastic demands.
• C)price elasticities of demand that are unit elastic.
• D)income elasticities of demand that are negative.

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Definitions:

Industrial Policy

Government-driven programs and policies aimed at improving the competitiveness and capabilities of domestic industries and sectors.

Subsidies

Financial assistance provided by the government to individuals or businesses to support economic activities deemed beneficial for the public.

Socially Optimal

A state in which resources are allocated in the most efficient way from a societal perspective, maximizing overall welfare or social utility.

Output Quantity

The amount of goods or services produced by a company or sector during a specific period.