E₁ is demand elasticity for Minutemaid orange juice, E₂ is demand elasticity for all orange juice, and E₃ is demand elasticity for all fruit drinks. Then A) |E₁| |E₂| |E₃| B) |E₂| |E₃| |E₁| C) |E₃| |E₁| |E₂| D) |E₃| |E₂| |E₁|

Question

E₁ is demand elasticity for Minutemaid orange juice, E₂ is demand elasticity for all orange juice, and E₃ is demand elasticity for all fruit drinks. Then A) |E₁| > |E₂| > |E₃| B) |E₂| > |E₃| > |E₁| C) |E₃| > |E₁| > |E₂| D) |E₃| > |E₂| > |E₁|

Quizplus · Accepted Answer

Demand elasticity is generally higher for more specific products (like Minutemaid orange juice) compared to broader categories (like all orange juice or all fruit drinks) because consumers can more easily substitute between specific brands or types.

E1 Is Demand Elasticity for Minutemaid Orange Juice, E2 Is

E₁ Is Demand Elasticity for Minutemaid Orange Juice, E₂ Is