waldziuchna

CFA likes to use the words “few” and “many” in the exam.
With oil, there are a “few” good subsitiutes available even though they are not readily available to the mass public, natural gas for example. If there are NO good substitutes available, it would be perfectly inelastic because people have NO choice. If there are FEW good substitutes available, people have limited choices so many will have to stay with the product while demand may go down some with higher prices. This is the definition of inelastic.