Lack of good substitutes for a particular product affects its demand curve as follows:
A) Makes it more elastic
B) Makes it less elastic
C) Makes it unitary elastic
D) Doesn't affect it at all
E) Cannot be determined without knowing the supply curve

Question

Quizplus · Accepted Answer

If there are no close substitutes for a product, consumers have no choice but to purchase it regardless of price changes. This makes the product's demand curve less elastic.

Lack of Good Substitutes for a Particular Product Affects Its