Which of these factors is MOST likely to increase the price elasticity of demand for plug-in electric cars?
A) decrease in the price of gasoline
B) significant decrease in the price of plug-in electric cars
C) reduction in the time needed to make a decision on a car purchase
D) increase in the number of car companies producing plug-in electric cars

Question

Quizplus · Accepted Answer

An increase in the number of car companies producing plug-in electric cars would increase the availability of substitutes, making consumers more sensitive to price changes, thus increasing the price elasticity of demand.

Which of These Factors Is MOST Likely to Increase the Price