The more narrowly we define a good,the easier it is to find substitutes,and
A)the greater is the number of producers of that good
B)the greater is the supply-side response
C)fewer consumers therefore wish to purchase the good
D)less elastic is the demand for that good
E)more elastic is the demand for that good

Question

Quizplus · Accepted Answer

When a good is narrowly defined, it means that it serves a specific and unique purpose, making it easier for consumers to find substitutes. As a result, the demand for the good becomes more elastic, meaning that consumers are more sensitive to changes in its price. This can have implications for producers, who may need to adjust their prices or supply in response to changes in demand.

The More Narrowly We Define a Good,the Easier It Is