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Suppose That Good X Has Few Close Substitutes and That

question 146

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 elastic demand?


Definitions:

Ora Serrata

The ora serrata is the serrated junction between the retina and the ciliary body in the eye.

Optic Disc

The point on the retina at which the optic nerve fibers exit the eye, creating a natural blind spot as there are no photoreceptor cells in this area.

Macula Lutea

A small, yellowish central area of the retina that is rich in cones and mediates clear, detailed vision.

Anterior Cavity

A body cavity that includes the thoracic, abdominal, and pelvic cavities; it houses and protects the body's internal organs.

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