Question 50 of 50 demand will be more elastic if Points 1 b

Question 50 of 50 demand will be more elastic if (Points : 1) better substitute goods exist the amount spend on the good is a smaller proportion of consumer\'s income the good is a necessity, not a luxury the time period is shorter

Solution

An elastic demand means that quantity demanded is highly responsive to change in price.

This will happen if there are better substitute goods available. In that case, if price of a good increases, consumers will switch to its substitute product, so quantity demanded of the good will decrease by a high amount.