When few substitutes are available, demand will tend to be more elastic.

Name: When few substitutes are available, demand will tend to be more elastic.
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Question

Quizplus · Accepted Answer

When few substitutes are available, consumers have limited alternatives to replace the good or service, therefore making demand less elastic. When there are many substitutes, consumers can easily switch to a similar product or service, which makes demand more elastic.

When Few Substitutes Are Available, Demand Will Tend to Be