There are several close substitutes for Quaker State oil but fewer substitutes for a complete checkup of your car's engine.We can expect the demand for:
A)Quaker State oil to be more price-inelastic than is demand for engine checkups.
B)the two to be equally price-elastic.
C)car checkups to be more price-elastic than is demand for Quaker State oil.
D)Quaker State oil to be more price-elastic than is demand for engine checkups.

Question

Quizplus · Accepted Answer

When there are many close substitutes for a product, consumers can easily switch to another brand if the price of the product increases, making the demand for that product more price-elastic. Since there are several close substitutes for Quaker State oil, its demand is more price-elastic. In contrast, with fewer substitutes for a complete checkup of a car's engine, the demand for engine checkups is less price-elastic, as consumers have fewer alternatives.

There Are Several Close Substitutes for Quaker State Oil but Fewer