Which of the following is a reason why the demand curve for an item would be more elastic?
A) The item is a necessity.
B) People's incomes are very high relative to the cost of the item.
C) The item has many very good substitutes.
D) The cost of the item forms a very small part of consumers' budgets.

Question

Quizplus · Accepted Answer

If an item has many very good substitutes, it means that consumers have options to choose from if the price of that item increases, making it easier for them to switch to a substitute. This leads to a more elastic demand curve, as changes in price will lead to larger changes in quantity demanded.

Which of the Following Is a Reason Why the Demand