Goods with Close Substitutes Tend to Have More Elastic Demands

question 59

True/False

Goods with close substitutes tend to have more elastic demands than do goods without close substitutes.

---

Definitions:

Overstocked Quantity

This term refers to an excessive amount of inventory beyond what is needed or can be sold, potentially leading to increased carrying costs and reduced efficiency.

Firm's Profits

The earnings of a company after all expenses and taxes have been subtracted from revenue, indicative of financial health and performance.

Lead Times

The time it takes from the initiation of a process until its completion, often used in manufacturing and supply chain management to describe the time from order to delivery.

Supply With Demand

Ensuring that the quantity of goods or services available meets the quantity demanded by consumers.