Goods for which the price elasticity of demand is relatively inelastic
A) have many substitutes.
B) are purchased by low-income households.
C) tend to be luxury items.
D) have few substitutes.

Question

Quizplus · Accepted Answer

Goods for which the price elasticity of demand is relatively inelastic have few substitutes. This means that consumers are willing to pay higher prices for the goods because there are no close substitutes available. Examples of such goods include gas, prescription drugs, and cigarettes.

Goods for Which the Price Elasticity of Demand Is Relatively