Question
Which of the following products is most likely to be ELASTIC?
Group of answer choices
A product with no substitutes
A product with few substitutes
A product with many substitutes
It is impossible to tell
Group of answer choices
A product with no substitutes
A product with few substitutes
A product with many substitutes
It is impossible to tell
Answers
GPT-4o mini
A product with many substitutes is most likely to be ELASTIC.
Elasticity in economics refers to how sensitive the quantity demanded of a good is to a change in price. When there are many substitutes available, consumers can easily switch to a different product if the price of one product increases, leading to a greater responsiveness in quantity demanded to price changes. Conversely, products with no or few substitutes tend to be more inelastic, as consumers have limited options for alternatives.
Elasticity in economics refers to how sensitive the quantity demanded of a good is to a change in price. When there are many substitutes available, consumers can easily switch to a different product if the price of one product increases, leading to a greater responsiveness in quantity demanded to price changes. Conversely, products with no or few substitutes tend to be more inelastic, as consumers have limited options for alternatives.