The demand for oil is inelastic because there are:
A) many complements for oil in its major use.
B) few complements for oil in its major use.
C) many substitutes for oil in its major use.
D) few substitutes for oil in its major use.

Question

Quizplus · Accepted Answer

The demand for oil is inelastic because there are few substitutes for oil in its major use. This means that even if the price of oil increases, people will still demand it because there are not many alternative products that can be used instead. For example, it is difficult for people to completely switch to electric cars or public transport as an alternative to using gasoline for their cars. Therefore, the demand for oil is relatively stable despite changes in price.

The Demand for Oil Is Inelastic Because There Are