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A good with many close substitutes is likely to have relatively ______ demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good rises.

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Answer: Elastic

Step-by-step explanation: When a good has close substitutes a small change in the price of the good will lead to a large change in its demand as consumers will switch to the less costly substitute good. Therefore, good with many close substitutes is likely to have relatively elastic demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good rises.

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User Guarana Joe
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