Multiple choice general knowledge science & technology

There are very few, if any, good substitutes for motor oil. Therefore

  1. the demand for motor oil would tend to be inelastic.

  2. the demand for motor oil would tend to be elastic.

  3. the demand for motor oil would tend to respond strongly to changes in prices of other goods.

  4. 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.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Since there are very few substitutes for motor oil, demand is inelastic. When consumers cannot easily switch to alternatives, they will continue purchasing despite price changes. Options B and C incorrectly suggest elastic demand.

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