Generally,as goods are more broadly defined,
A)demand becomes more price elastic
B)demand becomes less price elastic
C)total expenditure falls as the price decreases
D)the demand curve becomes straighter
E)more substitute goods can be identified

Question

Quizplus · Accepted Answer

As goods are more broadly defined, their consumption options and alternatives become more limited. This makes the buyers more committed to buying the good, and hence, they become less sensitive to price changes. Therefore, demand becomes less price elastic.

Generally,as Goods Are More Broadly Defined