Which of the following is likely to be true of a product that has a large number of substitutes?
A) Its income elasticity is likely to be zero.
B) It is likely to be highly price elastic.
C) It will be highly valued because of its exclusivity.
D) Its cost of production is likely to be low.

Question

Quizplus · Accepted Answer

Products with a large number of substitutes tend to be highly price elastic because consumers can easily switch to alternatives if the price of the product increases.

Which of the Following Is Likely to Be True of a Product