Which of the following is likely to have the most price elastic demand?
A)Dental floss
B)Milk
C)Diamond earrings
D)Salt

Question

Quizplus · Accepted Answer

Diamond earrings have the most price elastic demand among the options given. This is because they are a luxury item, and consumers are more sensitive to price changes for luxury items than for necessities like dental floss, milk, or salt. When the price of luxury items like diamond earrings increases, demand tends to decrease significantly, and vice versa.

Which of the Following Is Likely to Have the Most