If there are very few substitutes available for a product, demand for that product is likely to be:
A) perfectly inelastic
B) quite inelastic
C) very elastic
D) either elastic or inelastic, since the number of substitutes available does not affect the elasticity of demand

Question

Quizplus · Accepted Answer

When there are very few substitutes available for a product, consumers have limited alternatives, making them less responsive to price changes. This results in demand being quite inelastic.

If There Are Very Few Substitutes Available for a Product