Yes, this is true. Close substitutes for a good will make the demand for that good more elastic, since consumers can easily switch to a different good if the price of the original good rises.
<h3><u>The Impact of Close Substitutes on Price Elasticity of Demand</u></h3>
The demand for a good with many close substitutes is likely to be relatively elastic. This is because when the price of the good increases, consumers can easily switch to one of the close substitutes, which limits the effect of the price increase on demand.
For instance:
- If the price of a particular brand of cereal rises, consumers may decide to purchase a different brand of cereal as an alternative, rather than paying the higher price.
This ability to switch to a close substitute reduces the impact of the price increase on demand.
Elasticity is an important concept in economics and can be used to understand how prices and demand interact.
- When demand is elastic, an increase in price will cause a large decrease in demand. This is because consumers have the ability to switch to close substitutes, which limits the effect of the price increase.
- On the other hand, when demand is inelastic, an increase in price will cause only a small decrease in demand. In this case, consumers do not have close substitutes available, so they are more likely to continue purchasing the good despite the price increase.
Learn more about <u>Elasticity </u><u>of </u><u>Demand</u> at: brainly.com/question/5078326
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Explanation:
MIDI is an acronym that stands for Musical Instrument Digital Interface. It is a standard protocol that helps to connects musical instruments with computers and several hardware devices to communicate. It was invented in the 80's as a way to standardize digital music hardwares.
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The appropriate response is Bus Interface Unit or BIU. The BIU gives different capacities, including era of the memory and I/O addresses for the exchange of information between outside the CPU, and the EU.
The EU gets program direction codes and information from the BIU, executes these guidelines, and store the outcomes in the general registers. By passing the information back to the BIU, information can likewise be put away in a memory area or kept in touch with a yield gadget. Note that the EU has no association with the framework transports. It gets and yields every one of its information through the BIU.
The practice of taking someone else's work or ideas and passing them off as one's own.
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