Part 1 of: What makes the demand for some goods elastic and the demand for other goods inelastic? The fewer the substitutes for a good or service, the more __ is the demand for it. The smaller the proportion of income spent on a good, the more __ is the demand for it A. elastic; inelastic B. inelastic; elastic C. inelastic; inelastic D. elastic; elastic

## Step 1<br />The problem is asking us to identify the correct relationship between the demand for goods and the availability of substitutes and the proportion of income spent on a good. <br /><br />## Step 2<br />The first statement says that the fewer the substitutes for a good or service, the more inelastic is the demand for it. This is because when there are fewer substitutes, consumers have less choice and are less sensitive to price changes. This means that the demand for the good is inelastic.<br /><br />## Step 3<br />The second statement says that the smaller the proportion of income spent on a good, the more inelastic is the demand for it. This is because when a smaller proportion of income is spent on a good, consumers are less sensitive to price This the demand for the good is inelastic.