Demand for a good will tend to be relatively more price elastic if it exhibits which of the following characteristics?

It represents a small part of the consumer's income.

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The good has many substitutes available.

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It is a necessity (as opposed to a luxury).

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There is little time for the consumer to adjust to the price change.

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Solution

The correct option is A The good has many substitutes available.
Demand for a good will tend to be more elastic if the good has a many substitutes, because many substitutes have more elasticity.
Hence, the correct option is B.

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Demand for a good will tend to be relatively more price elastic if it exhibits which of the following characteristics?

The correct option is A The good has many substitutes available.Demand for a good will tend to be more elastic if the good has a many substitutes, because many substitutes have more elasticity.Hence, the correct option is B.

The correct option is A The good has many substitutes available.
Demand for a good will tend to be more elastic if the good has a many substitutes, because many substitutes have more elasticity.
Hence, the correct option is B.