If Substitutes for a Good Are Readily Available,the Demand for That

question 212

Multiple Choice

If substitutes for a good are readily available,the demand for that good

• A) does not change substantially if the price rises.
• B) does not change substantially if the price falls.
• C) is inelastic.
• D) is elastic.
• E) Both answers A and B are correct.

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Definitions:

Quantitative Restriction

Measures imposed by governments to limit the quantity of goods that can be imported or exported over a specified period.

Luxury Automobiles

High-end cars that offer superior performance, comfort, and amenities, often associated with status, exclusivity, and a high price point.

Quota

A fixed share or a specific limit on goods or services, often imposed by governments on imports or exports.

Importing

The process of bringing goods or services into a country from abroad for sale.