If the market for a product is broadly defined, then:
Answer Options:
A) there are few substitutes for the product and the demand for the product is relatively inelastic.
B) there are many substitutes for the product and the demand for the product is relatively elastic.
C) the expenditure on the good is likely to make up a large share of one’s budget.
D) the good has many complements.
If the market for a product is broadly defined, then there are few substitutes for the product and the demand for the product is relatively inelastic.