Which of the following is a characteristic of an item that has price-elastic demand?
A) A small number of competitors
B) Many substitutes
C) A short time period under consideration
D) A product that accounts for a small percentage of consumers' incomes
E) A necessity for survival

Question

Quizplus · Accepted Answer

Many substitutes make it more likely for consumers to switch to alternatives if the price of an item increases, indicating price-elastic demand.

Which of the Following Is a Characteristic of an Item