Asked by Perla Alvarado on Jul 06, 2024
Verified
In general,the fewer the substitutes available for a good
A) the more inelastic the demand for the good.
B) the more elastic the demand for the good.
C) the greater the demand for the good.
D) the less the demand for the good.
Substitutes Available
Other products or services that can be used in place of a particular good or service.
Inelastic
A demand or supply that is not significantly altered by changes in price.
Demand
The amount of a product or service buyers are prepared and can afford to buy at different price levels within a given timeframe.
- Acknowledge the impact that the accessibility of substitute goods has on the flexibility of demand.
Verified Answer
ZK
Zybrea KnightJul 11, 2024
Final Answer :
A
Explanation :
When there are few substitutes available for a good, consumers have limited options to switch to alternative products if the price of that good changes. Therefore, the demand for the good tends to be inelastic, meaning that changes in price have little effect on the quantity demanded. Conversely, when there are many substitutes for a good, consumers have more options to choose from if the price of one product changes, making the demand for the good more elastic.
Learning Objectives
- Acknowledge the impact that the accessibility of substitute goods has on the flexibility of demand.