A Good That Is Similar to Another,and Can Be Consumed

question 6

Multiple Choice

A good that is similar to another,and can be consumed in place of it,is called

• A)a normal good.
• B)an inferior good.
• C)a complementary good.
• D)a substitute good.

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Definitions:

Perfectly Elastic

A market scenario where the demand or supply responds infinitely to any change in price.

Optimal R&D

Refers to the ideal level of spending or investment in research and development activities that maximizes innovation benefits relative to costs.

Expected-Rate-Of-Return

The predicted amount of gain or loss an investment is expected to generate, expressed as a percentage.

Interest-Rate Cost-Of-Funds

The expense associated with borrowing funds, measured by the interest rate that banks or other financial institutions charge for the use of their money.