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22. A good has an elastic demand if a. there are substitutes for it. b. there...

22. A good has an elastic demand if

a. there are substitutes for it.

b. there is a change in the short term.

  c. it is a good of necessity.

d. the market is wide
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Answer #1

Ans: There are substitutes for it.

Explanation:

Demand for a good is more elastic when the percentage change in quantity demanded of a good is more than the percentage change in price. When a good has many substitutes available, then the demand for the good will be more elastic. Because when the price of a good increases, many consumer will switch to it's substitute products. So, demand decreases much. Thus, we can say that the demand for the good is elastic.

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