Elasticity of Demand Will ____ as the Availability of Substitutes

question 84

Multiple Choice

Elasticity of demand will ____ as the availability of substitutes ____.

• A)​increase; decreases
• B)​decrease; increases
• C)​increase; increases
• D)​remain unchanged; decreases

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Definitions:

Buyer

An individual or entity that acquires goods or services in exchange for money, playing a crucial role in the dynamics of supply and demand in the marketplace.

Social-Cost Curve

illustrates the total cost of producing a good or service, including both private costs incurred by businesses and external costs borne by society.

Private Cost

The cost of a production activity that is directly borne by an enterprise.

Gallon

A gallon is a unit of volume measurement used primarily in the United States, equal to 3.785 liters.