Which of the following would result in a higher absolute value of the price elasticity of demand for a product?
A)A wide variety of substitutes are available for the good.
B)The time period under consideration is short.
C)The good is a necessity.
D)The expenditure on the good is small relative to one's budget.

Question

Quizplus · Accepted Answer

A wide variety of substitutes available means that consumers have more options to switch to if the price of the original product increases. This high availability of substitutes makes the demand for the original product more elastic, as consumers are more likely to switch if the price changes.

Which of the Following Would Result in a Higher Absolute