When a good has a lot of close substitutes available,it is likely to be:
A)more price elastic than goods without close substitutes available.
B)less price elastic than goods without close substitutes available.
C)more price elastic than those with a lot of complement goods available.
D)less price elastic than those with a lot of complement goods available.

Question

Quizplus · Accepted Answer

When a good has many close substitutes, consumers have more options to choose from, making the demand more sensitive to changes in price. This means that a small increase in price may cause consumers to switch to a substitute, resulting in a significant decrease in the quantity demanded. Therefore, goods with many close substitutes tend to be more price elastic than goods without close substitutes.

When a Good Has a Lot of Close Substitutes Available,it