If a product is a necessity and has no substitutes at all, demand for the product is most likely to be
A) very inelastic.
B) inelastic.
C) unit elastic.
D) elastic.

Question

Quizplus · Accepted Answer

If a product has no substitutes and is a necessity, then consumers will likely continue to purchase the product no matter how much the price increases. This means that demand for the product is very inelastic, as the quantity demanded will not change much, if at all, in response to changes in its price.

If a Product Is a Necessity and Has No Substitutes