For which of the following is demand likely to be the most price elastic?
A)a good for which there are no close substitutes
B)a good for which there are no easily-obtained substitutes
C)a good with close substitutes that are difficult to obtain
D)a good that is no longer being produced
E)a good for which close substitutes are easily obtained

Question

Quizplus · Accepted Answer

When close substitutes are easily obtained, consumers have the ability to switch to other options if the price of a particular good increases. This makes demand more sensitive to price changes and therefore more price elastic.

For Which of the Following Is Demand Likely to Be