Asked by
Dezeriah Saldivar
on Dec 11, 2024
Verified
When a good is more narrowly defined (for example, airline travel versus Delta Airlines travel) ,
A) it will have fewer available substitutes so demand will be more elastic.
B) it will have fewer available substitutes so demand will be less elastic.
C) it will have more available substitutes so demand will be more elastic.
D) it will have more available substitutes so demand will be less elastic.
Narrowly Defined
Described or specified with a high degree of precision and detail, often used to limit the scope or focus of a concept or category.
Available Substitutes
Alternatives to a product or service that are readily accessible to consumers, affecting demand and pricing strategies.
More Elastic
Describes a greater sensitivity of demand or supply to changes in price or other economic factors.
- Pinpoint determinants that impact the flexibility of demand for goods and services.
- Understand the impact of market definitions and the presence of alternatives on the elasticity of demand.
Verified Answer
JS
Learning Objectives
- Pinpoint determinants that impact the flexibility of demand for goods and services.
- Understand the impact of market definitions and the presence of alternatives on the elasticity of demand.