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Commerce · Q378

Economics

Graduate and Post Graduate · Commerce · question 378

Q378

Identify the factor which generally keeps the price-elasticity of demand for a good high.

A.
Its very high price
B.
Its very low price
C.
Large number of substitutes
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
Solution:
Large number of substitutes keeps the price-elasticity of demand for a good high.