The demand for a good will be more price inelastic,
A)the higher is its price.
B)the larger is the percentage of income spent on it.
C)the longer is the passage of time since a price change.
D)the smaller the supply of the good.
E)the fewer substitutes are available for the good.

Question

Quizplus · Accepted Answer

When there are fewer substitutes available for a good, consumers have fewer options for how to spend their money and are therefore more likely to continue purchasing the good even if the price increases. This makes the demand for the good more price inelastic.

The Demand for a Good Will Be More Price Inelastic