Which of the following is not characteristic of a product with relatively inelastic demand?
A)The good is regarded by consumers as a necessity.
B)There are a large number of good substitutes for the good.
C)Buyers spend a small percentage of their total income on the product.
D)Consumers have had only a short time period to adjust to changes in price.

Question

Quizplus · Accepted Answer

A product with relatively inelastic demand means that consumers' purchase quantity does not change much with price changes. This is less likely to be the case if there are many good substitutes (choice B), as consumers can easily switch to alternatives if the price of the product increases, making the demand more elastic. Choices A, C, and D are characteristics that contribute to inelastic demand.

Which of the Following Is Not Characteristic of a Product