If a good is a necessity with few substitutes, then demand will tend to:
A)be more price-elastic.
B)be less price-elastic.
C)have price elasticity equal to 1.
D)be the same as that of a luxury good.

Question

Quizplus · Accepted Answer

When a good is a necessity with few substitutes, consumers are less likely to be able to find alternatives if the price of the good increases, therefore the demand will be less price-elastic.

If a Good Is a Necessity with Few Substitutes, Then