Goods and services for which network concerns are important have ______ demand.
A)relatively inelastic
B)relatively elastic
C)perfectly inelastic
D)unitary elastic

Question

Quizplus · Accepted Answer

When network concerns are important, consumers tend to choose goods and services that have alternatives and substitutes in the market. As a result, the demand for these goods and services becomes relatively elastic, which means that a small change in price will have a larger impact on the quantity demanded. Thus, choice B (relatively elastic) is the best answer.

Goods and Services for Which Network Concerns Are Important Have