Demand for a product is likely to be more price elastic if it
A) is considered a necessity.
B) has many substitutes.
C) is at the mature stage of the product life cycle.
D) requires a small cash outlay.
E) is nondiscretionary.

Question

Quizplus · Accepted Answer

Products with many substitutes tend to have more elastic demand because consumers can easily switch to alternatives if the price increases.

Demand for a Product Is Likely to Be More Price