Final answer:
The price elasticity of demand at higher prices depends on the nature of the good. Non-essential goods with substitutes tend to have an elastic demand, while essential goods with few substitutes are likely to have an inelastic demand.
Step-by-step explanation:
Price Elasticity of Demand at Higher Prices
The price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good. This elasticity can be categorized as elastic, inelastic, or unitary. Typically, as prices increase, if the good or service is considered non-essential or has readily available substitutes, consumers will respond to these price changes more significantly, resulting in an elastic demand. Conversely, if the good is essential or lacks substitutes, the demand tends to be inelastic because consumers can't easily avoid buying it despite higher prices. Without knowing the specific market and other factors at play, it is difficult to provide a blanket statement about the elasticity at higher prices; however, generally, non-essential goods will tend to have more elastic demand at higher prices.