Answer the following statement true (T) or false (F)
1) The smaller the number of good substitutes for a product, the greater will be the price elasticity
of demand for it.
2) The smaller the number of good substitutes for a product, the greater will be the price elasticity
of demand for it.
3) Generally speaking, the demand for luxury goods is more price elastic than is the demand for
necessities.
4) Generally speaking, the smaller the percentage of one's total budget devoted to a particular
product, the more price elastic will be the demand for that product.
1) F
2) T
3) T
4) F
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A) acceptability and predictability of value. B) precious metals backing fiat money. C) Congressional monetary support. D) a negative inflation rate.