Ceteris paribus,as the number of substitutes for a good increases,the
A)Price elasticity of demand should become smaller.
B)Price elasticity of demand should become larger.
C)Cross-price elasticity of demand should become negative.
D)Income elasticity of demand should become negative.

Question

Quizplus · Accepted Answer

As the number of substitutes for a good increases, consumers have more options to choose from, making the good more easily replaceable. This leads to a larger price elasticity of demand, as even a small increase in price may cause consumers to switch to a substitute.

Ceteris Paribus,as the Number of Substitutes for a Good Increases,the