Which of the following characteristics would describe a product with an elastic demand?
A)The good has many different uses and many substitutes for the product exist.
B)The good has relatively few uses and few substitutes for the product exist.
C)The good is considered a luxury and few substitutes for the product exist.
D)The good has many different uses and the price of the product is low relative to the buyer's income.

Question

Quizplus · Accepted Answer

A product with many substitutes and alternative uses will have a more elastic demand because consumers can easily switch to a substitute if the price increases. The availability of substitutes gives consumers more bargaining power and makes them more sensitive to price changes.

Which of the Following Characteristics Would Describe a Product with an Elastic