Demand for a product tends to be price inelastic if:
A. People spend a large share of their income on the product.
B. Few good substitutes are available for the product.
C. Few good complements for the product are available.
D. The product is considered a luxury item.
Answer:B
Demand for a product tends to be price inelastic if:
A. People spend a large share of their income on the product. B. Few good substitutes are available for the product. C. Few good complements for the product are available. D. The product is considered a luxury item.
Explanation: Choice "d" is correct. Demand for a product tends to be price inelastic if few good substitutes are available