Securities with few close substitutes are considered unique and this relation means that the aggregate demand-to-buy schedule will be
A) perfectly elastic
B) somewhat elastic
C) perfectly inelastic
D) relatively inelastic

Question

Quizplus · Accepted Answer

Securities with few close substitutes are considered more unique, making their demand less sensitive to price changes. This results in a relatively inelastic demand-to-buy schedule, as buyers have fewer alternatives and are thus less likely to change their demand based on price changes.

Securities with Few Close Substitutes Are Considered Unique and This