The closer the substitutes for a good, the
A) more elastic is the demand for the good.
B) less elastic is the demand for the good.
C) smaller the degree of substitutability between the goods.
D) larger the proportion of income that is spent on the good.

Question

Quizplus · Accepted Answer

The closer the substitutes for a good, the more elastic the demand for the good because consumers can easily switch to the substitute if the price of the good rises.

The Closer the Substitutes for a Good, the