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How is the price elasticity of demand of a commodity is affected by the number of its substitutes. - Economic Applications

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प्रश्न

How is the price elasticity of demand of a commodity is affected by the number of its substitutes.

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उत्तर

Price elasticity of demand of goods depends on the availability of its substitutes in the market. More the number of substitutes available, higher the price elasticity of demand for that good. It is because when there is a price change the buyers can easily shift from one substitute to another.

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पाठ 2: Elasticity of Demand - QUESTION BANK [पृष्ठ ४७]

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गोयल ब्रदर्स प्रकाशन Economic Applications [English] Class 10 ICSE
पाठ 2 Elasticity of Demand
QUESTION BANK | Q 21. | पृष्ठ ४७
गोयल ब्रदर्स प्रकाशन Economics [English] Class 10 ICSE
पाठ 3 Elasticity of Demand
QUESTION BANK | Q 21. | पृष्ठ ७८
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