Which of the following factors would indicate less elastic demand?
A)The good represents a large fraction of the budget.
B)Demand is measured over a longer period of time.
C)There are few substitutes.
D)The price of the good is high.

Question

Quizplus · Accepted Answer

When there are few substitutes available for a good, consumers have fewer alternatives to switch to if the price changes, leading to less elastic demand.

Which of the Following Factors Would Indicate Less Elastic Demand