Which of the following would result in higher price elasticity of good X?
A)more substitutes for good X
B)a shorter period of time has passed since the change in the price of good X
C)lower costs of labor in the production of good X
D)good X is more of a necessity than a luxury

Question

Quizplus · Accepted Answer

Price elasticity of demand is higher when there are more substitutes available for a good, as consumers can easily switch to alternatives if the price of the good increases.

Which of the Following Would Result in Higher Price Elasticity