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What is true of demand for a good that has many available substitutes?

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Answer:

Demand for the good is relatively elastic

Step-by-step explanation:

Substitute goods are goods that can be used in place of one another.

For example, there are different brands of jeans. These different brands serve the same purpose and be used interchangeably.

Goods with many substitutes usually have a relatively elastic demand.

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

The more elastic a good is, the more demand is sensitive to price changes

If the price of a good increases and it has many substitutes, consumers can easily shift to consuming a cheaper substitute

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