The more differentiated the product,A) the more elastic the demand.B) the more inelastic the demand.C) the more the entire demand curve shifts right.D) the more the entire demand curve shifts left.

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Sarah Preston · Accepted Answer

Final Answer : B, Explanation :  When a product is more differentiated, it means that it is not easily replaceable with another product. Thus, consumers may be willing to pay a higher price for the unique features of the product. This results in a more inelastic demand curve, as changes in price are less likely to significantly affect the quantity demanded.

The more differentiated the product,

A) the more elastic the demand.
B) the more inelastic the demand.
C) the more the entire demand curve shifts right.
D) the more the entire demand curve shifts left.

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