The demand for Neapolitan ice cream is likely quite elastic because
A) ice cream must be eaten quickly.
B) this particular flavor of ice cream is viewed as a necessity by many ice-cream lovers.
C) the market is broadly defined.
D) other flavors of ice cream are good substitutes for this particular flavor.

Question

Quizplus · Accepted Answer

Neapolitan ice cream is a combination of vanilla, chocolate, and strawberry flavors, which means that each individual flavor can be substituted for another flavor of ice cream. Therefore, if the price of Neapolitan ice cream were to increase, consumers could easily switch to an alternative ice cream flavor, making the demand for Neapolitan ice cream elastic.

The Demand for Neapolitan Ice Cream Is Likely Quite Elastic