The demand for grape-flavored Hubba Bubba bubble gum is likely
A)inelastic because there are many close substitutes for grape-flavored Hubba Bubba.
B)elastic because there are many close substitutes for grape-flavored Hubba Bubba.
C)inelastic because the market is broadly defined.
D)elastic because the market is broadly defined.

Question

Quizplus · Accepted Answer

The demand for grape-flavored Hubba Bubba bubble gum is considered elastic because there are many close substitutes available. When consumers have a variety of similar options to choose from, they are more sensitive to changes in the price of any one product, making the demand for that product elastic.

The Demand for Grape-Flavored Hubba Bubba Bubble Gum Is Likely