PRC-3 · Chapter 11 · Question 7 of 57
Which of the following factors would make the demand for a specific consumer product highly price-elastic?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) There is a vast number of close substitute brands available
Explanation
The availability of close substitutes makes demand highly elastic because consumers can easily switch to a rival product if the price rises even slightly.
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