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:

Cash Dividends

Payments made by a company out of its profits to its shareholders in the form of cash.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, or obsolescence.

Depreciation Expense

Depreciation expense represents the allocation of the cost of tangible assets over their useful lives.