The more substitutes available for a product, the
A) larger is its price elasticity of demand.
B) smaller is its income elasticity of demand.
C) smaller is its price elasticity of demand.
D) larger is its income elasticity of demand.

Question

Quizplus · Accepted Answer

The more substitutes available for a product, the more sensitive consumers are to price changes, leading to a larger price elasticity of demand.

The More Substitutes Available for a Product, the