Suppose that there are many substitutes for crocodile-leather handbags. This would mean that the:
A) demand for crocodile-leather handbags would tend to be income inelastic
B) demand for crocodile-leather handbags would tend to be price elastic
C) demand for crocodile-leather handbags would tend to be price inelastic
D) demand for crocodile-leather handbags would tend to be income elastic

Question

Quizplus · Accepted Answer

When there are many substitutes for a product, consumers have options to choose from, making them more likely to switch to a different product if the price of the original product increases. This means that the demand for crocodile-leather handbags would tend to be price elastic.

Suppose That There Are Many Substitutes for Crocodile-Leather Handbags