Question

How is the price elasticity of demand of a commodity affected by the number of its substitute.explain​

Answer 1

The more substitute a good has the more price elastic its demand becomes. To illustrate when the price of the good with more substitutes increases people would switch to other substitutes or alternatives which are cheaper thus quantity demanded for that good would decrease more than proportionately to increase in price. Thus the demand of the good with more substitutes is said to be more price elastic