Asked by mohammad uzair on Jul 09, 2024
Verified
When there are more substitutes for a product, the ________ for the product is ________.
A) demand; less price elastic
B) demand; more price elastic
C) income elasticity; greater
D) income elasticity; smaller
Price Elastic
Describes the responsiveness of the quantity demanded or supplied of a good to a change in its price; high elasticity indicates a significant response to price changes.
More Substitutes
The increase in alternative products or services that can replace or serve as options to a current product.
- Absorb the principles connecting demand elasticity with total revenue outcomes.
- Comprehend the impact of the presence of alternative products on demand's price sensitivity.
Verified Answer
KP
Kayli PayneJul 11, 2024
Final Answer :
B
Explanation :
When there are more substitutes available for a product, consumers can easily switch to another product if the price of the original product increases, making the demand for the original product more price elastic.
Learning Objectives
- Absorb the principles connecting demand elasticity with total revenue outcomes.
- Comprehend the impact of the presence of alternative products on demand's price sensitivity.