The more broadly a good is 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
E)has no effect on the good's price elasticity of demand

Question

Quizplus · Accepted Answer

When a good is broadly defined, it has fewer substitutes, making its demand less price-elastic.

The More Broadly a Good Is Defined