For which of the following types of goods would demand be most price-elastic?
A)necessities
B)goods with many substitutes
C)goods that require only a small portion of the buyer's budget
D)goods with vertical demand curves
E)goods with vertical supply curves

Question

Quizplus · Accepted Answer

Goods with many substitutes tend to have more elastic demand as consumers can easily switch to a substitute if the price of one good increases. Conversely, goods with few or no substitutes tend to have less elastic demand as consumers have fewer alternatives to choose from.

For Which of the Following Types of Goods Would Demand