When there are very few substitutes for a good, the demand for the good will tend to be
A) inelastic.
B) elastic.
C) unitary.
D) perfectly elastic.

Question

Quizplus · Accepted Answer

When there are very few substitutes for a good, consumers have limited alternatives to turn to if the price increases, which means that they are less responsive to price changes. As a result, the demand for the good will tend to be inelastic, or less sensitive to changes in price. This is because consumers are likely to continue purchasing the good even if the price increases, as there are few or no close substitutes available.

When There Are Very Few Substitutes for a Good, the Demand