There are very few,if any,good substitutes for motor oil.Therefore,the
A)demand for motor oil would tend to be inelastic.
B)demand for motor oil would tend to be elastic.
C)demand for motor oil would tend to respond strongly to changes in prices of other goods.
D)supply of motor oil would tend to respond strongly to changes in people's tastes for large cars relative to their tastes for small cars.

Question

Quizplus · Accepted Answer

When there are no good substitutes for a product, the demand for that product tends to be inelastic as consumers are willing to pay a higher price to continue using the product. Therefore, the demand for motor oil would tend to be inelastic because there are no good substitutes for it.

There Are Very Few,if Any,good Substitutes for Motor Oil