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Answer to Question #218115 in Economics for Paballo
Question #218115
A possible reason that the demand for petrol is inelastic is because
- A. petrol is a luxury good.
- B. households spend a small proportion of their income on petrol.
- C. a large proportion of the petrol South Africa consumes is imported.
- D. there is no close substitute for petrol.
Expert's answer
A possible reason that the demand for petrol is inelastic is because there is no close substitute for petrol.
So, the correct answer is D.
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