A lower price elasticity of demand coefficient occurs when:
A)the good has less substitutes.
B)the fall in price is fully compensated by increase in quantity.
C)the fall in price causes the total revenue to increase.
D)there is a strong competition among producers.

Question

Quizplus · Accepted Answer

A lower price elasticity of demand occurs when the good has fewer substitutes, making consumers less responsive to price changes.

A Lower Price Elasticity of Demand Coefficient Occurs When