The demand for a good is inelastic. Which of the following would be the most likely explanation for this?
A) The good is narrowly defined.
B) The good is broadly defined.
C) The good costs a large portion of one's total income.
D) The time interval considered is long.

Question

Quizplus · Accepted Answer

A good is broadly defined means there are fewer substitutes available, making demand inelastic as consumers have fewer alternatives.

The Demand for a Good Is Inelastic