Which of the following products will have elastic demand?
A)Gasoline.
B)Cigarettes.
C)Travel souvenirs.
D)Alcohol.

Question

Quizplus · Accepted Answer

Travel souvenirs are typically considered luxury items, meaning consumers can quickly cut back on their purchases if the price increases even slightly. This makes their demand elastic.

Gasoline is considered to have inelastic demand, as consumers usually need to buy it no matter what the price is. Cigarettes and alcohol, while they may be considered luxury items or even addictive products, also tend to have inelastic demand due to the immediate need or strong desire for them.

Which of the Following Products Will Have Elastic Demand