As the number of available substitutes for a good increases,the price elasticity of demand for the good will increase as well.

Question

Quizplus · Accepted Answer

When there are more substitutes available for a good, consumers have more options and can easily switch to another product if the price of the good increases. This makes the demand for the good more price-sensitive, i.e., more elastic. Therefore, as the number of substitutes for a good increases, the price elasticity of demand for the good also increases.

As the Number of Available Substitutes for a Good Increases,the