Consumers are particularly price-responsive when:
A) it is difficult to substitute across suppliers and prices are high.
B) prices are low and they have little time to change their consumption patterns.
C) a product has many substitutes and they have a long time to adjust their consumption.
D) there are few substitute goods available for a product, and they have a short time horizon to adjust their consumption.

Question

Quizplus · Accepted Answer

Consumers are more price-responsive when a product has many substitutes and they have ample time to adjust their consumption patterns. This flexibility allows them to easily switch to alternatives if the price of one product increases, making their demand more elastic.

Consumers Are Particularly Price-Responsive When