Hi Folks Chapter 22: Section 1: Core reading says: "Demand for most investments is very price-elastic because of the existence of close substitutes." I thought that its highly elastic due to non-existence of close substitutes. Please correct me if i'm wrong ? Cheers Jon
Not having read the notes in question, I would think it's correct. If there exists close substitutes it's easier to switch out of existing investments and into new ones hence making demand for a given investment price-elastic.
