Question

If your company has a lot of competitors, what does that do to your demand? A. Makes it less elastic B. Makes it more elastic C. Makes it less need-based D. Makes it more need-based

Answer 1

Makes it less need-based seems like the most correct choice. 

Answer 2

The best answer is C. If your company has a lot of competitors, it makes the company less need-based. Having a lot competitors would mean consumers have many choices to choose from. The consumers view on the products or services offered a a need will decrease. Also having a lot of competitors will make the consumers think that the products is easily accessible.