If consumers cannot readily switch to a close substitute when the price of a good increases, the demand for that good is likely to be:
A)elastic.
B)inelastic.
C)unit elastic.
D)perfectly elastic.

Question

Quizplus · Accepted Answer

If a consumer cannot readily switch to a close substitute, the change in quantity demanded will be small relative to a change in price, implying that demand is inelastic.

If Consumers Cannot Readily Switch to a Close Substitute When