A good is likely to have an inelastic demand curve if the:
A)consumer has significant time to respond to the price change.
B)good has few available substitutes.
C)good is a luxury.
D)good accounts for a large share of consumer income.

Question

Quizplus · Accepted Answer

Goods with few available substitutes tend to have inelastic demand because consumers have fewer alternatives to switch to if the price of the good increases, making their demand less sensitive to price changes.

A Good Is Likely to Have an Inelastic Demand Curve