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:

Borders

Boundaries or lines that define the edges of a country, territory, or area, often associated with regulatory or legal implications.

Rules

Established and authoritative principles or guidelines that govern behavior or the operation of systems or processes.

Arbitrary

Stemming from unpredictable preferences or spur-of-the-moment desires rather than through structured reasoning or organized principle.

Five Ws

A fundamental journalistic concept focusing on questions: Who, What, When, Where, and Why, to gather comprehensive information.