Vidyalelo
Commerce · Q40

Economics

Graduate and Post Graduate · Commerce · question 40

Q40

Other things equal, if a good has more substitutes, its price elasticity of demand is

A.
Larger
Answer
B.
Smaller
C.
Zero
D.
Unity

Answer: Option A

Solution

Answer: Option A
Solution:
Other things equal, if a good has more substitutes, its price elasticity of demand is larger.