When the availability of substitutes is low and the urgency of need is high, the price elasticity of demand is
A) elastic.
B) inelastic.
C) unitary.
D) positive.

Question

Quizplus · Accepted Answer

When substitutes are few and the need for a product is urgent, consumers are less sensitive to price changes, making the demand inelastic. They are more likely to pay higher prices because they have fewer alternatives and a pressing need for the product.

When the Availability of Substitutes Is Low and the Urgency