A product that has an elastic demand curve has all of the following characteristics EXCEPT
A) it has many substitutes.
B) a consumer can wait to buy the product.
C) it has few or no substitutes.
D) it is a large part of a consumer's income.

Question

Quizplus · Accepted Answer

A product with an elastic demand curve means that a small change in price will result in a large change in demand. This is typically seen in products that have many substitutes, where consumers can easily switch to a different product if the price of one goes up. The ability to wait to buy the product (B) and the product being a large part of a consumer's income (D) can also contribute to its elasticity. However, having few or no substitutes (C) would result in an inelastic demand curve.

A Product That Has an Elastic Demand Curve Has All