When there are many substitute products available, the price elasticity of demand for a given product will likely be
Blank
______.

Question

When there are many substitute products available, the price elasticity of demand for a given product will likely be 
Blank
______.

BlackTom AI · Accepted Answer

When there are many substitute products available, consumers can switch to a different product if the price of the original rises. This makes the quantity demanded respond more strongly to price changes, increasing price elasticity of demand.
Option 'better': This choice is not relevant to elasticity; the term 'better' does not describe how sensitive quantity demanded is to price changes.
Option 'lower': With abundant substitutes, the demand tends to be more responsive to price, not less. A lower elasticity would imply that price changes have little effect on quantity demanded, which contradicts substitutability.
Option 'higher': This is the correct characterization. Greater availability of substitutes makes the demand curve more elastic, so the elasticity value rises as consumers can easily switch when prices move.
Option 'more inelastic': This is the opposite of what happens. 'More inelastic' would mean consumers are less responsive to price changes, which occurs when there are few or no substitutes, not many.

When there are many substitute products available, the price elasticity of demand for a given product will likely be Blank ______.单项选择题

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