A good with many close substitutes is likely to have relatively ___________(elastic,inelastic) demand, since consumers can easil

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A good with many close substitutes is likely to have relatively ___________(elastic,inelastic) demand, since consumers can easil

y choose to purchase one of the close substitutes if the price of the good rises.A good?s price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are priced approximately the same, which one has the least elastic demand?-Diamond necklace-A heart valve for heart attack victims

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1 answer:

butalik [34] · Answer 1 · 2022-10-02T16:00:13+03:00

Answer:

Elastic demand

A heart valve

Explanation:

A good with many close substitutes will have a highly elastic demand. This is because an increase in the price of the good will causes the consumers to purchase one of its cheaper substitutes.

If both a diamond necklace and a heart valve for heart attack victims are priced the same, the price elasticity for the heart valve will be lower. This is because the diamond necklace is a luxury good but the heart valve is necessary for the survival of the victim.