If a good is a necessity with few substitutes, demand will tend to be:
A)elastic.
B)inelastic.
C)perfectly inelastic.
D)the same as that of an inferior good.

Question

Quizplus · Accepted Answer

When a good is a necessity with few substitutes, there are no close substitutes available to satisfy the same need. Therefore, the demand for that good will be less responsive to changes in price, making it inelastic. People will continue to purchase the good even if the price increases because they need it and cannot easily switch to another product.

If a Good Is a Necessity with Few Substitutes, Demand