If a good is a necessity with few substitutes,then demand will tend to:
A)be relatively price-elastic.
B)be relatively price-inelastic.
C)have price elasticity equal to 1.
D)be the same as that of a luxury good.

Question

Quizplus · Accepted Answer

When a good is a necessity with few substitutes, there are no or limited alternative goods. As a result, consumers tend to buy the good regardless of its price changes. Therefore, demand for such goods would be relatively price-inelastic.

If a Good Is a Necessity with Few Substitutes,then Demand