GCEEconomicsElasticity2019

Which of the following factors would make the demand for a commodity more price inelastic?

AThe availability of many close substitutes
BA long time period for adjustment
CThe commodity constituting a large proportion of consumer income
DThe commodity being a necessity with no close substitutesCORRECT
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Why the answer is D, and why the others tempt you.
Demand is more inelastic when a good is a necessity and has no close substitutes, because consumers must continue to buy it even when its price rises. Many close substitutes (option A), a long adjustment period (option B), and a large budget share (option C) all tend to make demand more elastic.
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