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The good is a one-of-a-kind, fancy, unique sports car.

a) Elastic
b) Inelastic
c) Unit elastic
d) Perfectly elastic

1 Answer

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Final answer:

The demand for a unique sports car is typically inelastic because such luxury goods have few substitutes and a high unique value, making their quantity demanded less sensitive to price changes.

Step-by-step explanation:

When it comes to the elasticity of demand for a unique sports car, which is characterized as a one-of-a-kind, fancy, and unique product, the most applicable type of elasticity would likely be inelastic demand. Inelastic demand indicates that the quantity demanded changes relatively little in response to price changes, which is typical for luxury goods with few substitutes and a unique value proposition. Since a unique sports car fits this description, its demand curve would not be highly responsive to price changes, unlike goods like pizza, where demand is highly elastic.

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