Eggs would typically have a
A) low elasticity of demand, probably between $- 1$ and $- 2$
B) low elasticity of demand, probably between 0 and $- 1$
C) high elasticity of demand, probably between $- 2$ and $- 3$
D) low elasticity of demand, probably between $- 2$ and $- 3$

Question

Eggs would typically have a 
A) low elasticity of demand, probably between $- 1$ and $- 2$
B) low elasticity of demand, probably between 0 and $- 1$
C) high elasticity of demand, probably between $- 2$ and $- 3$
D) low elasticity of demand, probably between $- 2$ and $- 3$

Quizplus · Accepted Answer

Eggs are considered a staple food item, meaning they are a necessary part of many diets. Additionally, there are not many good substitutes for eggs. These factors contribute to a lower elasticity of demand, usually between 0 and -1. Eggs are a staple food item and do not have many substitutes in terms of their nutritional value. Therefore, consumers are likely to continue purchasing eggs even if there are small changes in price, indicating a low elasticity of demand. However, the elasticity of demand for eggs may be slightly negative because consumers may switch to slightly cheaper substitutes or limit their consumption slightly if there is a significant increase in price. Therefore, the correct range for the elasticity of demand for eggs would be between 0 and -1.

Eggs Would Typically Have a A) Low Elasticity of Demand

Eggs Would Typically Have a
A) Low Elasticity of Demand