The elasticity of demand for a good tends to increase if:
A) there is an increase in the availability of complements
B) the time period considered becomes shorter
C) the market takes on narrower and more specific boundaries
D) there is a decrease in the availability of substitutes

Question

Quizplus · Accepted Answer

Elasticity of demand increases when the market is more narrowly defined because consumers can find more substitutes within a specific category, making demand more responsive to price changes.

The Elasticity of Demand for a Good Tends to Increase