Which of the following goods is likely to have the most elastic demand curve?
A) Tobacco products.
B) Gasoline.
C) Medical care.
D) Honda automobiles.

Question

Quizplus · Accepted Answer

Honda automobiles have a more elastic demand curve compared to tobacco products, gasoline, and medical care because there are many close substitutes for a specific brand of automobiles. If the price of Honda cars increases significantly, consumers can easily switch to other brands, making the demand for Honda cars more sensitive to price changes. In contrast, tobacco products, gasoline, and medical care are considered necessities with fewer substitutes, leading to a more inelastic demand.

Which of the Following Goods Is Likely to Have the Most