The closer the substitutes for a good the larger the proportion of income that is spent on the good. more elastic is the demand for the good. less elastic is the demand for the good. smaller the degree of substitutability between the goods.

Question

The closer the substitutes for a good the larger the proportion of income that is spent on the good. more elastic is the demand for the good. less elastic is the demand for the good. smaller the degree of substitutability between the goods.

Answer 1

The correct answer is: more elastic is the demand for the good.Explanation: When substitutes for a good are closer, it means that consumers can easily switch to alternative products. This increases the price sensitivity of the good, making the demand for the good more elastic. In other words, a small change in the price of the good will result in a larger change in the quantity demanded.

Soru

The closer the substitutes for a good the larger the proportion of income that is spent on the good. more elastic is the demand for the good. less elastic is the demand for the good. smaller the degree of substitutability between the goods.

Çözüm

Cevap