When a good has many close substitutes available,it is likely to be:
A) less price elastic than are goods without close substitutes available.
B) more price elastic than are goods with many complement goods available.
C) less price elastic than are goods with many complement goods available.
D) more price elastic than are goods without close substitutes available.

Question

Quizplus · Accepted Answer

This is because when a good has many close substitutes available, consumers can easily switch from that good to a similar one if the price of the original good increases. Therefore, an increase in price will lead to a significant decrease in demand for that good, making it more price elastic.

When a Good Has Many Close Substitutes Available,it Is Likely