Multiple Choice
A firm produces and sells two goods, A and B. Good A is known to have many close substitutes; good B makes up a significant portion of most families' budgets. From these facts, we would expect that the demand for Good A would be _, while that of Good B would be .
A) elastic; elastic also
B) inelastic; inelastic also
C) elastic; inelastic
D) inelastic; elastic
Correct Answer:
Verified
Correct Answer:
Verified
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