Answered: The demand for a product is more…

The demand for a product is more inelastic: the lower the average income of consumers. the poorer the available substitutes. the longer the time period covered. the better the available substitutes.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

**Understanding Inelastic Demand**

Characteristics that make the demand for a product more inelastic include:

- The lower the average income of consumers.
- The poorer the available substitutes.
- The longer the time period covered.
- The better the available substitutes.
- The more narrowly defined the product.

This explanation helps to understand the factors influencing the elasticity of demand for various products.

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