The demand for a product is relatively inelastic if
A) only a few close-substitute products are available
B) spending on the product constitutes a large portion of consumer income
C) the product is considered to be a luxury
D) the consumer has considerable time to adjust to price changes

Question

Quizplus · Accepted Answer

When there are only a few close substitutes available for a product, consumers have fewer alternatives to switch to if the price of the product increases, making the demand for the product relatively inelastic.

The Demand for a Product Is Relatively Inelastic If