Question

when there few close subsitutes avalibale for a good, demand tends to be
a. perfectly inelastic
b. relatively inelastic
c. relatively elastic
d. perfectly elastic

Answer 1

Relatively inelastic. As even when sellers raise the price, there won't be many alternatives for the buyers to go to
An increase in price will result in a less than proportionate change in quantity demanded. An example of such a good include necessities such as food.