A good is likely to have an inelastic demand curve if:
A) the consumer has significant time to respond to the price change.
B) the good has few available substitutes.
C) the good is a luxury.
D) the good accounts for a large share of consumer income.

Question

Quizplus · Accepted Answer

A good is likely to have an inelastic demand curve if it has few available substitutes, as consumers have limited options to switch to other products when the price changes.

A Good Is Likely to Have an Inelastic Demand Curve