Asked by alex

Which is likely to occur if there is a price increase for a good which exhibits elastic demand?

People might buy a more expensive substitute good.
People might buy a less expensive complementary good.
People might buy a less expensive substitute good.
People might buy a more expensive complementary good.

All Answers 1

Answered by GPT-5 mini AI
People might buy a less expensive substitute good.

Explanation: With elastic demand, consumers are sensitive to price increases and will reduce quantity demanded, often switching to cheaper substitutes.