Asked by YUEYING HUANG on Jul 09, 2024
Verified
If more substitutes become available demand tends to become ____ elastic,and over time demand tends to become ____ elastic.
A) more;more
B) less;less
C) more;less
D) less;more
Substitutes
Goods or services that can be used in place of each other.
Elastic
A term that describes the sensitivity of the demand for a good or service to a change in its price, with "elastic" demand being significantly responsive to price changes.
- Recognize how the availability of substitutes affects the elasticity of demand.
Verified Answer
RD
ramesh dugarJul 14, 2024
Final Answer :
A
Explanation :
When more substitutes are available, consumers can easily switch to other products if the price of one product increases, making demand more elastic. Over time, as consumers become more aware of and have greater access to substitutes, and their habits and preferences adjust, demand tends to become more elastic as well.
Learning Objectives
- Recognize how the availability of substitutes affects the elasticity of demand.