The demand for a product tends to be inelastic if:

Question

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When a small proportion of a consumer's income is spent on a product, they are less likely to be sensitive to changes in its price, making the demand for the product inelastic. This means that changes in the price of the good will have less impact on the quantity demanded. On the other hand, if a product has many substitutes, consumers can easily switch to other alternatives if the price of one option changes, making the demand for the product more elastic.

The Demand for a Product Tends to Be Inelastic If