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Social Science Clinic => Economics => Microeconomics => Topic started by: Bernana on May 24, 2019

Title: "The fewer the number of substitutes for a product, the more elastic the demand for that product." ...
Post by: Bernana on May 24, 2019

"The fewer the number of substitutes for a product, the more elastic the demand for that product." Is the previous statement true or false?

Title: "The fewer the number of substitutes for a product, the more elastic the demand for that product." ...
Post by: tandmlomax84 on May 24, 2019

The statement is false. The greater the number of substitutes, the more elastic the demand for that product. Conversely, the fewer the number of substitutes, the less elastic (the more inelastic) the demand for that product.