Which of the following is true for a lower price elasticity of demand coefficient?
A) The market is broadly defined.
B) The quantity demanded is more responsive.
C) Few substitutes exist.
D) Many substitutes exist.
E) All of the above.

Question

Quizplus · Accepted Answer

A lower price elasticity of demand coefficient means that quantity demanded is less responsive to changes in price. This is often the case when there are few substitutes available.

Which of the Following Is True for a Lower Price