Demand for a product is likely to be more price elastic if:
A.
it is considered a necessity.
B.
it has many substitutes.
C.
it has few substitutes.
D.
its price is low relative to a product with which it must be used.
Answer: B
A.
it is considered a necessity.
B.
it has many substitutes.
C.
it has few substitutes.
D.
its price is low relative to a product with which it must be used.
Answer: B