中等ECON-ELAS-006
Which factor would make the price elasticity of demand for a good more elastic?
A. The good has many close substitutes✓ 答案
B. The good is a necessity
C. The good has few substitutes
D. The good is a small proportion of the consumer's budget
解說
Availability of close substitutes makes demand more elastic because consumers can easily switch. Necessities and few substitutes make demand inelastic. A small budget share also tends to make demand inelastic, as consumers are less sensitive to price changes.