Question

section 1: economics
lesson 3: supply and demand
practice
you own a sandwich shop in a neighborhood that has many other competing sandwich shops. this means your demand is probably _______ (select the best answer.)
○ need - based
○ time - based
○ elastic
○ inelastic

Explanation:

In a market with many competing sandwich shops, consumers have numerous substitutes. If your shop raises prices, customers can easily switch to other shops, so the quantity demanded for your sandwiches will change significantly with price—this is the definition of elastic demand. Need-based and time-based are not standard terms for demand elasticity, and inelastic demand applies when substitutes are few.

Answer:

Elastic