Demand for a product is likely to be more price elastic if:
A)it has few substitutes.
B)its price is low relative to a product with which it must be used.
C)it is considered a necessity.
D)it has many substitutes.

Question

Quizplus · Accepted Answer

When a product has many substitutes, consumers have more options to choose from, making them more sensitive to changes in price. This in turn makes the demand for the product more price elastic.

Demand for a Product Is Likely to Be More Price