which is likely to occur if there is a price increase for a good which exhibits elastic demand?\npeople…
which is likely to occur if there is a price increase for a good which exhibits elastic demand?\npeople might buy a more expensive substitute good.\npeople might buy a less expensive complementary good.\npeople might buy a less expensive substitute good.\npeople might buy a more expensive complementary good.
Answer
Brief Explanations:
When a good has elastic demand, a price - increase leads consumers to be more price - sensitive. They will look for alternatives. Substitute goods are alternatives to the original good. Consumers are likely to switch to a less expensive substitute to save money. Complementary goods are used together with the original good and a price - increase of the main good usually decreases demand for complementary goods, not increases the purchase of more expensive ones.
Answer:
People might buy a less expensive substitute good.