Question

The elasticity of demand for a product is likely to be greater Group of answer choices if the product is an imported good rather than a domestically produced good. the larger the number of substitute products available. the smaller the number of substitute products available. the smaller the proportion of one's income spent on the product.

Answer 1

Answer:

the larger the number of substitute products available.

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

for a good with many substitutes, if the price of the good increases, consumers can easily shift to the consumption of substitutes. so, the change in price leads to a greater change in quantity demanded.