Which of the following is not a characteristic of a product whose demand is inelastic?
A) There are very few substitutes for the product.
B) The amount spent on the product is a relatively small percentage of one's income.
C) There is a long time period under consideration.
D) The product is considered a necessity.
E) There are a small number of competitors from which to purchase the product.

Question

Quizplus · Accepted Answer

When there is a long time period under consideration, consumers have more time to adjust their behavior and find substitutes, making the demand more elastic. Therefore, long time periods are characteristic of products with more elastic demand, not inelastic demand.

Which of the Following Is Not a Characteristic of a Product