If the market for a product is broadly defined, then
A)the good has many complements.
B)there are few substitutes for the product and the demand for the product is relatively inelastic.
C)there are many substitutes for the product and the demand for the product is relatively elastic.
D)the expenditure on the good is likely to make up a large share of one's budget.

Question

Quizplus · Accepted Answer

When a market is broadly defined, it means that the product is seen as a general category with fewer close substitutes, leading to relatively inelastic demand.

If the Market for a Product Is Broadly Defined, Then