economic lowdown video series—video 3: applications of price elasticity of demand\n1 of 5\nhow do consumers…
economic lowdown video series—video 3: applications of price elasticity of demand\n1 of 5\nhow do consumers typically respond to price increases for elastic goods?\nthey remain unaffected\nthey increase consumption\nthey decrease consumption significantly\nthey switch to substitutes
Answer
Brief Explanations:
For elastic goods, a change in price leads to a more - than - proportionate change in quantity demanded. When prices increase, consumers are highly responsive and look for alternatives.
Answer:
They switch to substitutes