If a good is a necessity with few substitutes,all others things equal,then demand will tend to:
A)be more price-elastic.
B)be less price-elastic.
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, consumers have few alternatives to turn to if the price of the good increases. Therefore, they are likely to continue purchasing the good even if the price increases, resulting in a less price-elastic demand.

If a Good Is a Necessity with Few Substitutes,all Others