As the number of substitutes for a good increases,the absolute value of its own-price elasticity
A)stays the same
B)increases
C)decreases
D)the good becomes perfectly inelastic.

Question

​As the number of substitutes for a good increases,the absolute value of its own-price elasticity
A)​stays the same
B)increases
C)decreases
D)​the good becomes perfectly inelastic.

Quizplus · Accepted Answer

As the number of substitutes for a good increases, consumers have more options to choose from, making them more sensitive to changes in price. This results in an increase in the absolute value of the own-price elasticity, indicating that the good is more sensitive to price changes.

​As the Number of Substitutes for a Good Increases,the Absolute

As the Number of Substitutes for a Good Increases,the Absolute