A good that is defined narrowly has _____
A)more substitutes and a more elastic demand.
B)fewer substitutes and a more elastic demand.
C)more substitutes and a less elastic demand.
D)fewer substitutes and a less elastic demand.
E)more complements and a more elastic demand.

Question

Quizplus · Accepted Answer

A narrowly defined good typically has more substitutes available, which makes its demand more elastic. This is because consumers can easily switch to other similar products if the price of the narrowly defined good increases.

A Good That Is Defined Narrowly Has _____