The Greater the Availability of Close Substitutes for a Product

question 22

True/False

The greater the availability of close substitutes for a product, the greater the price elasticity of demand for that product.

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Definitions:

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which may not necessarily reflect its market value.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the company remains the same.

Market Value

The market price at which an asset or service can be transacted currently.

Shares Outstanding

The total number of shares of a corporation that have been authorized, issued, and purchased by investors and are held by them.