Price elasticity of demand for a product tends to be greater:
A)the lower its price.
B)the more broadly the product is defined.
C)the closer substitutes are for it.
D)the less close substitutes are for it.

Question

Quizplus · Accepted Answer

The closer substitutes are for a product, the greater the price elasticity of demand will be. This is because consumers have more options for other products if the price of the initial product increases, making them more likely to switch to a substitute.

Price Elasticity of Demand for a Product Tends to Be