Answer
As the number of substitutes for a particular product increases, the price elasticity for the product INCREASES.
Work Step by Step
The price elasticity of demand should become larger as the number of substitutes for a product grows. This is because if the price of one of the substitutes increases, buyers can switch to another substitute. If the price of butter increases for example, consumers can buy margarine as a substitute. Therefore, increases in price for either item will increase the demand for the other product.
