In which of the following cases would the price elasticity of demand be expected to increase?
A)The number of close substitutes for the good increases.
B)The time period under consideration decreases.
C)The cost of the good relative to total income decreases.
D)The supply of the good increases.

Question

Quizplus · Accepted Answer

When the number of close substitutes for a good increases, consumers have more options to choose from, which makes the demand more elastic, as they can easily switch to substitute products.

In Which of the Following Cases Would the Price Elasticity