Demand is more elastic
A)in the short run than in the long run
B)for necessities than for luxuries
C)for food than for hamburgers
D)for goods with many substitutes than for goods with only a few
E)for broadly defined goods than for narrowly defined ones

Question

Quizplus · Accepted Answer

When goods have many substitutes, it means that consumers can easily switch from one product to another if the price of one product increases. Therefore, demand becomes more elastic. On the other hand, if goods have only a few substitutes, consumers are less likely to switch and are willing to pay a higher price, making demand less elastic.

Demand Is More Elastic