Suppose That Good X Has Few Close Substitutes and That

question 40

Short Answer

Suppose that good X has few close substitutes and that good Y has many close substitutes. Which good would you expect to have more price inelastic demand?

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Definitions:

Government Administration Costs

Expenses associated with the management and operation of government services and functions.

Universal Basic Income

A financial model proposing that all citizens receive a regular, unconditional sum of money from the government.

Proponents

Individuals or groups who support or advocate for a particular idea, policy, or project.

Income Equality

A situation where earnings are distributed in a way that all individuals or households achieve a similar level of income, minimizing wealth disparities.