If a product has several good substitutes, demand for the product is most likely to be
A) very inelastic.
B) inelastic.
C) unit elastic.
D) elastic.

Question

Quizplus · Accepted Answer

If a product has several good substitutes, it means that consumers have multiple options to choose from, and they can easily switch to another product if the price of one product increases. Therefore, the demand for the product is likely to be elastic, as even a small increase in price can lead to a significant decrease in demand.

If a Product Has Several Good Substitutes, Demand for the Product