If Good a Had Twice as Many Good Substitutes as Good

question 44

True/False

If good A had twice as many good substitutes as good B, but good B consumed twice the amount of a buyers income as good A, goods A and B would have the same elasticity of demand.

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Definitions:

External Cost

Costs that are not borne by the producer or consumer, but by a third party or the environment, such as pollution.

Air Conditioning

A system for controlling the humidity, ventilation, and temperature in a building or vehicle to provide a comfortable indoor environment.

Public Good

A public good refers to a product or service offered to every member of a society for free, regardless of profit, by either governmental entities or private individuals or groups.

Police Protection

A mechanism of public security provided by governmental police forces aiming to maintain order, enforce the law, and prevent and investigate crime.