What is the most likely effect on the demand for vegetable oil for baking, given Monique's ability to substitute it with other ingredients?

The demand for vegetable oil for baking is considered elastic primarily due to the availability of substitutes that Monique can use in place of vegetable oil. When consumers can easily switch to alternative ingredients, even a small change in the price of vegetable oil can lead to a significant change in the quantity demanded. If the price of vegetable oil increases, Monique might opt for substitutes such as butter, margarine, or other oils, resulting in a reduction in the demand for vegetable oil.

An elastic demand indicates that consumers are responsive to changes in price, largely due to the availability of readily accessible alternatives. In contrast, inelastic demand would suggest that consumers would continue to purchase a product despite price changes, which is less likely in this scenario since Monique has the option to use substitutes. Perfectly elastic demand would imply that any increase in price would cause the quantity demanded to drop to zero, highlighting sensitivity but not accurately reflecting the scenario's range of substitute choices. Unitary elastic demand indicates that a change in price leads to a proportional change in quantity demanded, which doesn't capture the flexibility that comes from the ability to substitute various ingredients.