The demand for a good is more elastic if the
A) good is a necessity.
B) good has few substitutes.
C) good is narrowly defined.
D) supply of the good is plentiful.
E) Both answers B and C are correct.

Question

Quizplus · Accepted Answer

The demand for a good is more elastic if the good is narrowly defined because consumers can more easily find substitutes for specific items, making them more sensitive to changes in price.

The Demand for a Good Is More Elastic If the