Ford Mustangs would tend to be more elastic in demand than all cars because there are more substitutes for Ford Mustangs than for cars.

Question

Quizplus · Accepted Answer

The demand for Ford Mustangs is more elastic because consumers can easily switch to other sports cars or vehicles if the price of Mustangs increases, indicating a higher sensitivity to price changes due to the availability of substitutes.

Ford Mustangs Would Tend to Be More Elastic in Demand