The number of vehicle types available in the United States has increased dramatically over the past thirty years.Everything else equal,this would make
A) the demand for individual vehicle types to become less elastic.
B) the demand for individual vehicle types to become more elastic.
C) the demand for all vehicle types to become unitary elastic.
D) the demand for low quality vehicle types to become less elastic.

Question

Quizplus · Accepted Answer

An increase in the number of vehicle types available in the market would make the demand for each individual vehicle type more elastic, as consumers have more options to choose from and can easily switch to a different type if the price of one type becomes too high. This would lead to more competition among vehicle manufacturers to offer better quality and pricing in order to attract customers.

The Number of Vehicle Types Available in the United States