A good without any close substitutes is likely to have relatively demand, since
ID: 1216802 • Letter: A
Question
A good without any close substitutes is likely to have relatively demand, since consumers cannot easily switch to a substitute good if the price of the good rises. Price elasticity of demand for a good depends on the price of the good relative to the consumer's incomes. Of the following goods, which one has the most elastic demand? Thumbtacks Monthly cell phone bill Fish food Toilet paper Other things being equal, the demand for natural gas will tend to be elastic in the short run than in the long run.Explanation / Answer
Answer to 1st question: inelastic
Answer to 2nd question: Fish food
Answer to 3rd question: Less
Explanation: Generally in the short run, demand is inelastic and it becomes more elastic with time. This remains the case with gas, as time passes people can find alternatives to gas, etc, so demand for it will become more elastic.