Asked by
Maridaliz Rodriguez
on Nov 25, 2024
Verified
The smaller the number of good substitutes for a product, the greater will be the price elasticity of demand for it.
Price Elasticity
The measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.
Substitutes
Products or services that can replace each other in use or consumption, thereby affecting consumer choices and market dynamics.
Product
An item or service that is created through a process and is offered for sale or use.
- Learn about the principle of price elasticity of demand and the steps in its calculation process.
- Identify factors influencing elasticity of demand, including the availability of substitutes.
Verified Answer
GT
Learning Objectives
- Learn about the principle of price elasticity of demand and the steps in its calculation process.
- Identify factors influencing elasticity of demand, including the availability of substitutes.
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