The value of the price elasticity of demand for a good with no close substitutes tends to be _____
A)greater than −1.
B)less than −1.
C)equal to −1.
D)equal to 0.
E)equal to 1.

Question

Quizplus · Accepted Answer

The value of the price elasticity of demand for a good with no close substitutes tends to be less than −1, indicating that the demand is relatively inelastic. This is because consumers have fewer alternatives to switch to if the price of the good increases, making them less sensitive to price changes.

The Value of the Price Elasticity of Demand for a Good