The value of price elasticity of demand for a good with no close substitutes
A)will tend to be greater than -1
B)will tend to be less than -1
C)will tend to be equal to -1
D)will tend to be equal to 0
E)cannot be determined without more information

Question

Quizplus · Accepted Answer

The price elasticity of demand for a good with no close substitutes tends to be inelastic, meaning consumers are less responsive to price changes, so the elasticity will tend to be greater than -1 (inelastic demand).

The Value of Price Elasticity of Demand for a Good