Under which of the following two scenarios would demand for hot dogs be more elastic? Explain.
(a) You are at a baseball game at Wrigley Field and want to eat a hot dog.
(b) It's Tuesday, you are planning the menu for a picnic you are going to have on Saturday and you decide to serve hot dogs.

Question

Quizplus · Accepted Answer

The Answer is Demand for hot dogs will be more elastic in scenario (b) because you have much more time to shop around for hot dogs. At the game if you want a hot dog, you've got to pay the price. The general lesson is the more time you have to shop the more elastic the demand.

Under Which of the Following Two Scenarios Would Demand for Hot