The demand for a product is likely to be more elastic when
A) the share of the total budget spent on the product is small.
B) more complementary products are available.
C) the consumer has a short time to adjust to price changes.
D) more good substitutes for the product are available.

Question

Quizplus · Accepted Answer

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

The Demand for a Product Is Likely to Be More