question archive A demand for a product is less inelastic: a) When it has many close substitutes, b) When it has fewer close substitutes, c) When it has many complements, d) When it has fewer complements
A demand for a product is less inelastic: a) When it has many close substitutes, b) When it has fewer close substitutes, c) When it has many complements, d) When it has fewer complements
Subject:EconomicsPrice:2.88 Bought3
A demand for a product is less inelastic:
a) When it has many close substitutes,
b) When it has fewer close substitutes,
c) When it has many complements,
d) When it has fewer complements.
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- A demand for a product is less inelastic a) When it has many close substitutes,.
When a good has many close substitutes, the consumers of the good have a wide range of choices available with them to switch on to in case of any price change of the good. This expands their consumption choices for good, as a result of which the quantity demanded of the good vary by a large amount when the price of the good changes. This is why goods with many substitutes are elastic.
