When a good is more broadly defined

        1. When a good is more broadly defined

          2. Broadly defined goods examples.

          Of the following, which good has the most elastic demand?

        2. When a good is more broadly defined, the more substitutes it has so the more elastic is its demand.
        3. Broadly defined goods examples
        4. This means that when a good is defined broadly, there are more alternatives or substitutes available in the market for consumers to choose from.
        5. it will have more available substitutes so demand will be more elastic.

          6. When a good is more broadly defined (for example, all gasoline versus one specific brand of gasoline), it will have more available substitutes so demand will be more elastic. it will have more available substitutes so demand will be more inelastic.

          it will have fewer available substitutes so demand will be more elastic. it will have fewer available substitutes so demand will be more inelastic

          Solution

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          Wallace ClineVeteran · Tutor for 9 years

          Answer

          When a good is more broadly defined (for example, all gasoline versus one specific brand of gasoline), it will have fewer available substitutes so demand will be more inelastic.<br /><br />Highlight: [it will have fewer available substitutes so demand will be more inelastic]

          Explanation

          ## Step 1: Understand the concept of elasticity of demand.<br />Elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good.

          If demand is elastic, consumers are more responsive to price changes. If demand is inelastic, consumers are les