In general,the fewer the substitutes available for a good
A)the more inelastic the demand for the good.
B)the more elastic the demand for the good.
C)the greater the demand for the good.
D)the less the demand for the good.

Question

Quizplus · Accepted Answer

When there are few substitutes available for a good, consumers have limited options to switch to alternative products if the price of that good changes. Therefore, the demand for the good tends to be inelastic, meaning that changes in price have little effect on the quantity demanded. Conversely, when there are many substitutes for a good, consumers have more options to choose from if the price of one product changes, making the demand for the good more elastic.

In General,the Fewer the Substitutes Available for a Good