Which of the following factors would indicate a less elastic demand?
A) The good represents a large fraction of the budget.
B) Demand is measured over a longer period of time.
C) There are few substitutes.
D) The price of the good is high.

Question

Quizplus · Accepted Answer

Goods with few substitutes tend to have less elastic demand because consumers have fewer alternatives to switch to if the price of the good increases.

Which of the Following Factors Would Indicate a Less Elastic