Which of the following is relatively inelastic with respect to demand?
A) A luxury good.
B) A good with few substitutes.
C) A good that is very expensive.
D) A good that is a complement.

Question

Quizplus · Accepted Answer

A good with few substitutes will have relatively inelastic demand because consumers have limited alternative options to choose from. They are more likely to continue purchasing the good even if the price increases due to the lack of substitutes.

Which of the Following Is Relatively Inelastic with Respect to Demand