If a product has many substitutes,which of the following statements is correct?
A)Its income elasticity is high.
B)It is likely that it is an inferior product.
C)Its supply elasticity is high.
D)Its price elasticity of demand is high.

Question

Quizplus · Accepted Answer

If a product has many substitutes, it means that consumers have options to switch to other similar products if the price of the original product increases. This indicates that the demand for the product is highly elastic, which is reflected in a high price elasticity of demand.

If a Product Has Many Substitutes,which of the Following Statements