Which of the following is NOT a characteristic of inelastic demand?

Inelastic demand refers to a situation where the quantity demanded of a good or service responds very little to changes in price. The characteristics associated with inelastic demand emphasize that consumers will continue to purchase relatively stable amounts regardless of price fluctuations.

The option indicating that close substitutes are available is not a characteristic of inelastic demand because the presence of close substitutes generally leads to more elastic demand. When substitutes are readily available, consumers can easily switch to alternatives if the price of the original product increases. This responsiveness means that demand tends to decrease when prices rise, showing elasticity rather than inelasticity.

In contrast, products that are necessities (which makes them essential for consumers) often exhibit inelastic demand; even if prices rise, consumers will still purchase them because they cannot do without them. High consumer loyalty also supports inelastic demand, as loyal consumers are less likely to reduce their quantity demanded even when prices increase. These characteristics reinforce the idea that inelastic demand is marked by a lack of responsiveness to price changes, generally linked to the necessity or loyalty associated with a product.