A lower price elasticity of demand coefficient occurs when:
A) many substitutes exist.
B) the quantity demanded is more responsive.
C) few substitutes exist.
D) the market is broadly defined.

Question

Quizplus · Accepted Answer

A lower price elasticity of demand coefficient occurs when there are few substitutes available for the product or service. This means that consumers have fewer options to switch to if the price of the product increases, making their demand less responsive to changes in price.

A Lower Price Elasticity of Demand Coefficient Occurs When