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What effect does the availability of many substitutes have on the elasticity of demand for a good?

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  1. Today, 12:51
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    The availability of many substitutes increases the elasticity of demand for a good. With the presence of substitutes the consumer has more options to seek out if there are price changes, therefore, the consumer is highly responsive to price changes and thus the elasticity of the demand curve is higher if there are many substitutes.
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What effect does the availability of many substitutes have on the elasticity of demand for a good?
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