There are several close substitutes for Bayer aspirin but fewer substitutes for a complete medical examination.Therefore,all other things equal,you would expect the demand for:
A)medical examinations to be more price-elastic than is the demand for Bayer aspirin.
B)Bayer aspirin to be more price-elastic than is the demand for medical examinations.
C)Bayer aspirin to be more perfectly price-inelastic.
D)the two to be equally price-elastic.

Question

Quizplus · Accepted Answer

The presence of close substitutes makes the demand for a product more price-elastic because consumers can easily switch to alternatives if the price of the product increases. Since there are several close substitutes for Bayer aspirin but fewer for a complete medical examination, the demand for Bayer aspirin is more price-elastic compared to the demand for medical examinations.

There Are Several Close Substitutes for Bayer Aspirin but Fewer