Question

There are very few, if any, good substitutes for motor oil. Therefore, the demand for motor oil would tend to be inelastic. the demand for motor oil would tend to be elastic. the demand for motor oil would tend to respond strongly to changes in prices of other goods. the supply of motor oil would tend to respond strongly to changes in people’s tastes for large cars relative to their tastes for small cars.

Answer 1

Answer:

The correct answer is: the demand for motor oil would tend to be inelastic.

Explanation:

Inelastic demand is that demand that is not very sensitive to a change in price. In this way, before a variation in the price the quantity demanded reacts in a less than proportional way. For example, if the price increases by 10% and in response the quantity demanded is reduced by less than 10%, then the demand is said to be inelastic.