When very few substitutes for a good exist, demand will be
A) elastic.
B) unit-elastic.
C) inelastic.
D) perfectly elastic.

Question

Quizplus · Accepted Answer

When there are very few substitutes for a good, it means that consumers have limited options to switch to if the price of that good increases. This results in a situation where the demand for the good is relatively insensitive to changes in its price, therefore making it inelastic.

When Very Few Substitutes for a Good Exist, Demand Will