Question

The steepness of the demand curve is determined in part by the degree of substitutability between products. If buyers see products as good substitutes, demand will be______ . If buyers see products as poor substitutes, demand will be________.

Answer 1

Answer: Flatter; Steeper.

Explanation:

Elasticity affects the slope of the demand curve of a product. A greater slope implies a less elastic product and a steeper demand curve.

The steepness of the demand curve is typically determined by the degree of substitutability between the products. In cases where the buyers see the products as good substitutes, the demand will be flatter .

The flatter demand curve shows that there is a greater quantity demanded in response to a price change. When buyers see products as poor substitutes, the demand will be steeper.