ECONOMICS
DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
What are the products that have elastic demand?
|
|
types of cell phones
|
|
|
cereal
|
|
|
gas
|
|
|
insulin
|
Explanation:
Detailed explanation-1: -Arc Price Elasticity of Demand formula. Common examples of products with high elasticity are luxury items and consumer discretionary items, such as a brand of cereal or candy bars.
Detailed explanation-2: -(a) Breakfast cereal has many substitutes. Consequently, if its price increases, demand will decline. Consequently, demand for breakfast cereal is elastic.
Detailed explanation-3: -The demand for Kelloggs Corn Flakes is very elastic because consumers have many other options that are near-perfect substitutes.
There is 1 question to complete.