if-a-new-substitute-for-a-popular-product-is-introduced-what-is-the-likely-effec

Question

If a new substitute for a popular product is introduced, what is the likely effect on the original product's price elasticity of demand?

Accepted Answer

The original product's demand becomes more elastic.

Answer

The original product's demand remains unchanged.

Answer

The original product's demand becomes perfectly inelastic.

Answer

The original product's demand becomes more inelastic.