If a good is a necessity with few substitutes, all others things equal, then demand will tend to: have price elasticity equal to 1. be more price-elastic. be the same as that of a luxury good. be less price-elastic.

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Business

Jocelynn Huynh

25 March, 13:44

If a good is a necessity with few substitutes, all others things equal, then demand will tend to: have price elasticity equal to 1. be more price-elastic. be the same as that of a luxury good. be less price-elastic.

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Answers (1)

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Valentino Keith · Answer 1

the answer is that the demand will be less price-elastic

Explanation:

this is mainly because if a good or a service is a necessity, no matter how the price change, the people will still have to consume it as there are no or a minimum number of substitutions. This limits the options the consumers have to change for another product. Thus, making the demand non elastic.