Final answer:
A good without close substitutes typically has inelastic demand, meaning consumers will continue to buy the product even if the price rises because they cannot switch to alternatives. Necessities like life-saving drugs and gasoline are examples of goods with highly inelastic demand curves.
Step-by-step explanation:
A good without any close substitutes is likely to have relatively inelastic demand, because consumers cannot easily switch to a substitute good if the price of the good rises. When substitute availability is low or non-existent, consumers have limited choices and are compelled to continue purchasing the good even at higher prices. Such goods can be necessities like life-saving drugs and gasoline. Because these products are essential, the demand remains constant regardless of price changes, which is a characteristic of inelastic demand.
Public goods, on the other hand, are nonexcludable and non-rival, meaning they cannot be withheld from those who haven't paid for them, and one individual's consumption does not reduce availability to others. While public goods are a different concept, they can sometimes relate to discussions on product demand and market dynamics.
Lastly, if a firm produces a product without close substitutes, it has a stronger control over the market and can influence the price more easily—a common trait of a monopoly. The availability of substitutes plays an essential role in market competition and the elasticity of demand for a product.