-If a product has few substitutes,which of the following statements is correct?
A)It is likely that its income elasticity is high.
B)It is likely that it is an inferior product.
C)It is likely that its supply elasticity is high.
D)It is likely that its price elasticity of demand is low.

Question

-If a product has few substitutes,which of the following statements is correct?
A)It is likely that its income elasticity is high. 
B)It is likely that it is an inferior product. 
C)It is likely that its supply elasticity is high. 
D)It is likely that its price elasticity of demand is low.

Quizplus · Accepted Answer

When a product has few substitutes, its demand tends to be less sensitive to price changes, meaning consumers are less likely to switch to another product if the price of this product increases. This results in a lower price elasticity of demand.

-If a Product Has Few Substitutes,which of the Following Statements