Which of the following characteristics would describe a product with an elastic demand?
A)The good is considered a necessity and many substitutes for the product exist.
B)The good is considered a necessity and few substitutes for the product exist.
C)The good is considered a luxury and many substitutes for the product exist.
D)The good is considered a luxury and few substitutes for the product exist.

Question

Quizplus · Accepted Answer

A product with an elastic demand is one where consumers are sensitive to price changes, which is more likely when the product is considered a luxury and there are many substitutes available. This means consumers can easily switch to alternatives if the price of the product increases, indicating elasticity in demand.

Which of the Following Characteristics Would Describe a Product with an Elastic