Lack of Good Substitutes for a Particular Product Affects Its

question 1

Multiple Choice

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

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Definitions:

Recession

An economic downturn marked by a significant decline in activity across the economy, lasting more than a few months.

Demand Decline

A situation where the desire or willingness of consumers to purchase a particular good or service decreases over time.

Elastic Demand

A situation where the quantity demanded of a product changes significantly when its price changes.

Inelastic Demand

A situation where the demand for a product does not change significantly in response to a change in its price.