Final answer:
The statement is true; demand tends to be less elastic for necessities, broadly defined goods, and goods with few substitutes in the short run, because of less flexibility to adjust consumption or production in response to price changes.
Step-by-step explanation:
The statement that demand is less elastic in the short run, for necessities, for broadly defined goods, and for goods with few close substitutes, is indeed true. Elasticity measures the responsiveness of quantity demanded or supplied to a change in price.
In the short run, consumers and producers often have less flexibility to adjust their behavior in response to price changes. As a result, the short-run elasticity of demand or supply is generally lower than in the long-run where more options and adjustments are possible.
For necessities, consumers cannot easily forego or find alternatives, resulting in inelastic demand. Similarly, goods with few close substitutes leave consumers with limited options in the event of price changes, leading to demand being inelastic.
When goods are broadly defined, they encompass a wider array of substitutes, making it harder for price changes to significantly alter the total quantity demanded, thus the demand is less elastic.