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

1 answer

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.