Which of the following factors causes a demand curve to become more elastic over time?
A) New substitutes for the product are discovered.
B) New and important uses for the product are discovered.
C) More producers begin to produce the product.
D) More consumers acquire a desire for the product.

Question

Quizplus · Accepted Answer

When new substitutes for a product are discovered, consumers have more options to choose from, which leads to increased competition. As a result, the demand curve for the original product becomes more elastic over time. This is because consumers can easily switch to the new product if the price of the original product becomes too high.

Which of the Following Factors Causes a Demand Curve to Become