Question

Which is likely to occur if there is a price increase for a good which exhibits elastic demand

Answer 1

Your answer would be, If there is a price increase for a good; People might buy a LESS EXPENSIVE substitute good.

(Substitution Effects) =====> Example =====> If the Price of Coffee goes up, Then people will substitute for Tea, Because it is less cheaper. (If that makes sense.).

Hope that helps!!!!! -P- : )