A good will have a more elastic demand,
A) the greater the availability of close substitutes.
B) the more narrow the definition of the market.
C) the shorter the period of time.
D) the more it is regarded as a necessity.

Question

Quizplus · Accepted Answer

When a good has more close substitutes available, consumers can easily switch to a substitute if the price of the good increases, leading to a more elastic demand.

A Good Will Have a More Elastic Demand