An elastic response in the quantity of a good demanded would be caused by
A) the availability of many substitutes.
B) a lack of substitutes.
C) a lack of sensitivity to the good's price.
D) the good representing a small portion of a person's budget.

Question

Quizplus · Accepted Answer

When there are many substitutes available for a good, consumers have more options to choose from and can easily switch to another good if the price of one good increases, causing an elastic response in quantity demanded. This is because the demand for the product is sensitive to changes in price.

An Elastic Response in the Quantity of a Good Demanded