If people cannot distinguish between goods A and B, then economists describe the goodsas
A) having a zero cross elasticity
B) being perfect substitutes
C) belonging to an oligopolistic industry
D) belonging in different markets
E) having a cross elasticity of one

Question

Quizplus · Accepted Answer

When goods are perfect substitutes, it means consumers are indifferent between them and can replace one with the other without any loss of utility, which is why economists describe such goods as being perfect substitutes.

If People Cannot Distinguish Between Goods a and B, Then