Which statement is true of the market for a product is broadly defined?
A)The good has many complements.
B)There are few substitutes for the product, and the demand for the product is relatively inelastic.
C)There are many substitutes for the product, and the demand for the product is relatively elastic.
D)The expenditure on the good is likely to make up a large share of one's budget.

Question

Quizplus · Accepted Answer

When a product is broadly defined, it means there are fewer substitutes available, leading to relatively inelastic demand.

Which Statement Is True of the Market for a Product