The price elasticity of demand partly depends on how readily and easily consumers can switch their purchases from one product to another.

Question

Quizplus · Accepted Answer

The price elasticity of demand measures the responsiveness of consumers to changes in the price of a product or service. One of the factors that affects the price elasticity of demand is the availability of substitute products or alternatives. If consumers can easily switch their purchases to a similar product or service, then the demand for the original product or service is likely to be more elastic (i.e. more responsive to changes in price). Therefore, the statement is true.

The Price Elasticity of Demand Partly Depends on How Readily