The demand for a particular brand of apple juice is likely to be:
A) very price elastic, because there are many close substitutes available.
B) less price elastic, because there are many close substitutes available.
C) very price elastic, because the adjustment time is so fast.
D) less price elastic, because the adjustment time is so slow.

Question

Quizplus · Accepted Answer

If there are many close substitutes available for the particular brand of apple juice, consumers will be more likely to switch to a substitute if the price of the particular brand increases, making the demand for the brand more price elastic.

The Demand for a Particular Brand of Apple Juice Is