When a good is more broadly defined,
A) the more substitutes it has, so demand will be more price-elastic.
B) the less substitutes it has, so demand will be more price-elastic.
C) the more substitutes it has, so demand will be less price-elastic.
D) the less substitutes it has, so demand will be less price-elastic

Question

Quizplus · Accepted Answer

When a good is more broadly defined, it has fewer substitutes, making the demand less price-elastic because consumers have fewer alternatives to switch to if the price changes.

When a Good Is More Broadly Defined