If there are few close substitutes for a good,demand tends to be relatively:
A) elastic.
B) inelastic.
C) unitary elastic.
D) neither elastic, inelastic, nor unitary elastic.

Question

Quizplus · Accepted Answer

If there are few close substitutes for a good, consumers will have fewer alternatives to choose from and will therefore be less responsive to price changes, resulting in relatively inelastic demand.

If There Are Few Close Substitutes for a Good,demand Tends