The availability of fewer substitutes for a good means its demand curve:
A) becomes less elastic.
B) becomes more elastic.
C) maintains the same elasticity.
D) changes elasticity in an indeterminate direction.

Question

Quizplus · Accepted Answer

When there are fewer substitutes for a good, consumers have fewer options to switch to if the price of that good increases, making their demand for that good less responsive to changes in price. As a result, the demand curve becomes less elastic.

The Availability of Fewer Substitutes for a Good Means Its