The demand curve for a good that has many perfect substitutes in consumption is likely to be
A)upward sloping
B)steep
C)highly inelastic
D)horizontal
E)vertical

Question

Quizplus · Accepted Answer

When a good has many perfect substitutes, consumers can easily switch to another substitute if the price of one becomes too high. This means that a small change in price will cause a large change in the quantity demanded, leading to a horizontal demand curve.

The Demand Curve for a Good That Has Many Perfect