Ceteris paribus,the price elasticity of demand for a good with many substitutes is likely to be inelastic.

Question

Quizplus · Accepted Answer

When a good has many substitutes, consumers have more options to choose from, which makes the demand for that good more elastic. In other words, if the price of the good increases, consumers are more likely to switch to a substitute, reducing the demand for the original good. Therefore, the price elasticity of demand for a good with many substitutes is likely to be elastic, rather than inelastic.

Ceteris Paribus,the Price Elasticity of Demand for a Good with Many