If a substitute good is easy to find,then demand for a good is
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly inelastic.
E) Substitutes don't have any effect on elasticity.

Question

Quizplus · Accepted Answer

If a substitute good is easy to find, it means that consumers have more options to choose from, making their demand for a particular good more sensitive to changes in price. Hence, the demand for that good will be elastic.

If a Substitute Good Is Easy to Find,then Demand for a Good