A major determinant of the price elasticity of demand is the availability of substitutes.

Question

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The availability of substitutes is a major factor in determining the price elasticity of demand. If there are many substitutes available for a good or service, consumers are more likely to switch to a substitute if the price of the original good or service rises. This makes the demand for the original good or service more elastic, meaning that a small change in price will result in a larger change in quantity demanded.

A Major Determinant of the Price Elasticity of Demand Is