Asked by
Alexis Gomez
on Oct 08, 2024Verified
The smaller the number of good substitutes for a product,the greater will be the price elasticity of demand for it.
Price Elasticity
A measure of how much the quantity demanded of a good responds to a change in its price, with elasticity referring to the degree of responsiveness.
Good Substitutes
Products or services that can be used in place of each other, having a high cross-elasticity of demand.
- Grasp the theory behind price elasticity of demand and its influence on both revenue and job creation.
Verified Answer
GR
Learning Objectives
- Grasp the theory behind price elasticity of demand and its influence on both revenue and job creation.
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