When There Are Few Substitutes Available for a Good, Demand

question 250

True/False

When there are few substitutes available for a good, demand tends to be relatively inelastic.

---

Definitions:

Accounts Payable Subsidiary Ledger

The subsidiary ledger containing the individual accounts with creditors (suppliers).

Cash Payments Journal

A business ledger that documents every cash expenditure or payment conducted by a company.

Purchases Journal

A purchases journal is a special journal used in accounting to record all purchases of merchandise, supplies, or other assets on credit.

Horizontal Analysis

Financial analysis that compares an item in a current statement with the same item in prior statements.