If an item has several good substitutes,the demand curve for that item is likely to be
A)relatively inelastic.
B)relatively elastic.
C)perfectly inelastic.
D)unit elastic.

Question

Quizplus · Accepted Answer

When an item has several good substitutes, it means that consumers have options to choose from. Therefore, if the price of the item increases, consumers can easily switch to one of the substitutes, resulting in a decrease in demand for the original item. This makes the demand curve for the item relatively elastic, as small changes in price cause a large change in quantity demanded.

If an Item Has Several Good Substitutes,the Demand Curve for That