A good with many substitutes will have a _____ curve that is relatively _____ elastic than a good with few substitutes.
A) supply; less
B) supply; more
C) demand; less
D) demand; more

Question

Quizplus · Accepted Answer

A good with many substitutes will have a demand curve that is relatively more elastic than a good with few substitutes. This is because consumers have a greater ability to switch to a substitute if the price increases, making them more sensitive to changes in price. Conversely, a good with few substitutes will have a less elastic demand curve because consumers have fewer alternatives and may be willing to pay a higher price to continue consuming the good. The term "supply curve" is not relevant to the question as it relates to the quantity of goods that producers are willing to offer at various prices, not the responsiveness of consumers to changes in price.

A Good with Many Substitutes Will Have a _____ Curve