In the market for oranges, availability of substitutes limits a single seller's power over price.

Name: In the market for oranges, availability of substitutes limits a single seller's power over price.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If there are many substitutes available for oranges, consumers have the option to switch to those substitutes if the price of oranges rises, which limits the power a single seller has over the price. This is known as the concept of elasticity of demand. Therefore, the statement is true.

In the Market for Oranges, Availability of Substitutes Limits a Single