If there are many close substitutes available for a good, its elasticity of demand will be higher.

Name: If there are many close substitutes available for a good, its elasticity of demand will be higher.
Brand: Quizplus
Rating: 4.7 (33 reviews)

Question

Quizplus · Accepted Answer

When there are many close substitutes available for a good, consumers have more options to choose from, making it easier for them to switch to a substitute if the price of one good increases. This in turn makes the demand for the original good more elastic.

If There Are Many Close Substitutes Available for a Good