The Internet is likely to:
A) Decrease price elasticity of demand because transactions are numerous and quick
B) Have no impact on price elasticity of demand because few people do business on the Internet
C) Increase price elasticity of demand because of the availability of substitute products
D) Decrease price elasticity of demand because of the availability of complementary products

Question

Quizplus · Accepted Answer

The availability of substitute products on the Internet increases price elasticity of demand as consumers can easily find similar products at lower prices.

The Internet Is Likely To