When many substitutes exist for a good, demand will be
A) elastic.
B) unit-elastic.
C) inelastic.
D) perfectly unit-elastic.

Name: When many substitutes exist for a good, demand will be A) elastic. B) unit-elastic. C) inelastic. D) perfectly unit-elastic.
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Question

Quizplus · Accepted Answer

When many substitutes exist for a good, consumers have a lot of options to choose from, so they are more likely to be sensitive to changes in price. As a result, demand will be elastic.

When Many Substitutes Exist for a Good, Demand Will Be