Which of the following statements is FALSE?
A) Goods or services that have few close substitutes generally have a less elastic demand.
B) Goods or services for which a greater proportion of income is spent on the item generally have a more elastic demand.
C) A narrowly defined good or service generally has a less elastic demand.
D) The longer the time that has elapsed since a price change, the more elastic the demand.

Question

Quizplus · Accepted Answer

A narrowly defined good or service generally has a more elastic demand because consumers can more easily find substitutes for specific items than for broadly defined categories.

Which of the Following Statements Is FALSE