Demand is more elastic _____
A)in the short run than in the long run.
B)for necessities than for luxuries.
C)for goods with no substitutes.
D)for goods with many substitutes than for goods with only a few.
E)for broadly defined goods than for narrowly defined ones.

Question

Quizplus · Accepted Answer

When there are more substitutes available for a good, consumers can easily switch to an alternative if the price increases, making demand more elastic. In contrast, when there are fewer substitutes available, consumers are more likely to continue buying the good, even at a higher price, making demand less elastic.

Demand Is More Elastic _____