Suppose that there is only one small clothing store in the remote village of Green Acres, and until recently the townspeople bought their shirts there. As more people in Green Acres become connected to the Internet, the price elasticity of demand for shirts at the Green Acres store will:
A)increase because the Internet offers more substitutes.
B)decrease because the Internet offers more substitutes.
C)remain the same, but the quantity demanded will decrease as more people shop online.
D)remain the same, but the demand will decrease as more people shop online.

Question

Quizplus · Accepted Answer

The Internet connection provides more substitute sources of buying shirts, and goods with more substitutes have a greater price elasticity of demand.

Suppose That There Is Only One Small Clothing Store in the Remote