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.

The correct answer is: more elastic is the demand for the good.<br /><br />Explanation: When there are closer substitutes for a good, the demand for that good tends to be more elastic. Elasticity of demand measures how sensitive the quantity demanded is to changes in price. If there are close substitutes available, consumers can easily switch to the substitute if the price of the good increases, making the demand more elastic.