Suppose that there are many substitutes for crocodile-leather handbags.This would mean that the:
A)supply of crocodile-leather handbags would tend to be price elastic
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 more options and can easily switch to a cheaper alternative if the price of the original product increases. This makes the demand for the product more responsive to changes in price, making it price elastic. So, in this case, the demand for crocodile-leather handbags would tend to be price elastic.

Suppose That There Are Many Substitutes for Crocodile-Leather Handbags