other things being equal if a good has many substitutes then the price elasticity of demand is
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Other things being equal if a good has many substitutes then the price elasticity of demand is more elastic or perfectly elastic.
Elasticity of demand refers to the changes in the demand for a product related to its price.
If There are many substitutes, even a small increase in price will reduce its demand to a great extent.
Similarly a reduction in the price can increase the demand immediately.
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Assuming all other factors of production are held constant,and a good has some numerous substitutes,then price elasticity of demand will decrease with an increase of that commodity.
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