Which of the following is a characteristic of an item with elastic demand?
A)A price that accounts for a small percentage of consumers' incomes
B)A short time period under consideration
C)A small number of competitors selling the product
D)Many substitutes
E)A high cost of production

Question

Quizplus · Accepted Answer

Elastic demand means that consumers are very sensitive to changes in price, and will easily switch to a substitute product if the price of the original item increases. Therefore, having many substitutes available is a characteristic of an item with elastic demand.

Which of the Following Is a Characteristic of an Item