Question

If a commodity has many substitutes, then its demand becomes ___​

Answer 1

Answer:

If the commodity has many close substitutes the demand for such a commodity will be highly elastic. The reason is that where exists a close substitute in the relevant price range, its demand will tend to be elastic. But in respect of a commodity having no substitute, the demand will be somewhat inelasti

Answer 2

Answer:

If a commodity has many substitutes, then its demand becomes relatively elastic .