If the Market for a Product Is Broadly Defined, Then

question 54

Multiple Choice

If the market for a product is broadly defined, then

• A)the good has many complements.
• B)there are few substitutes for the product and the demand for the product is relatively inelastic.
• C)there are many substitutes for the product and the demand for the product is relatively elastic.
• D)the expenditure on the good is likely to make up a large share of one's budget.

---

Definitions:

Tax

Compulsory financial charges imposed by a government on individuals and organizations to fund public expenditures.

Good

An item or product that satisfies a want or need, available for sale or trade.

Market Demand

The total quantity of a good or service that all consumers in the market are willing and able to purchase at different prices.

Market Supply

The total quantity of a good or service that all producers in a market are willing and able to sell at various price levels.