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JAMB Economics 1988 Question 18

Question 18

Elasticity

One factor which influences the slope of a non-linear demand curve for a commodity is the

  1. A.price of the commodity
  2. B.quantity of the commodity demanded
  3. C.availability of substitutes
  4. D.availability of complements.
Show the answer and explanation

Answer: C (availability of substitutes)

Explanation

The more substitutes a good has, the more buyers respond to its price, making the demand curve flatter.