Is a blue Ford Ranger with an off-road suspension considered to elastic or inelastic and why? Elastic, since it is a small part of your budget Inelastic, since it is a narrowly defined good Elastic, since you really like the Ford Ranger Inelastic, since it has a large number of substitutes

The correct answer is: Inelastic, since it has a large number of substitutes.<br /><br />Explanation: In economics, the price elasticity of demand measures how much the quantity demanded of a good responds to a change in its price. A good is considered inelastic if the quantity demanded does not change significantly when the price changes. In this case, a blue Ford Ranger with an off-road suspension is considered inelastic because there are many other similar vehicles available in the market, such as other brands or models of pickup trucks with off-road capabilities. Therefore, consumers have a variety of substitutes to choose from, making the demand for this specific vehicle relatively inelastic.