Asked by Allison Brown on Jul 30, 2024
Verified
Demand is more elastic for an item for which few substitutes are available.
Elastic Demand
A situation where the quantity demanded of a product changes significantly in response to a change in price.
Substitutes
Products or services that can be used in place of each other; an increase in the price of one leads to an increase in demand for the other.
Available
Referring to resources or goods that are obtainable and can be utilized.
- Acquire knowledge on the concept of price elasticity of demand and its determination process.
- Understand the impact of substitute availability on demand elasticity.
Verified Answer
ZK
Zybrea KnightAug 02, 2024
Final Answer :
False
Explanation :
Demand is less elastic for an item for which few substitutes are available, because consumers have fewer alternatives and are less sensitive to price changes.
Learning Objectives
- Acquire knowledge on the concept of price elasticity of demand and its determination process.
- Understand the impact of substitute availability on demand elasticity.