There are several close substitutes for Bayer aspirin but fewer substitutes for a complete medical examination. Therefore, all other things equal, you would expect the demand for:
A) medical exams to be more price-elastic.
B) Bayer aspirin to be more price-elastic.
C) Bayer aspirin to be more price-inelastic.
D) the two to be equally price-elastic.

Question

Quizplus · Accepted Answer

Bayer aspirin has more substitutes, making its demand more price-elastic compared to medical exams, which have fewer substitutes.

There Are Several Close Substitutes for Bayer Aspirin but Fewer