Rank these three items in terms of the elasticity of the demand for them at any given price, from most elastic to least elastic: alcoholic beverages, beer and Molson Canadian.
A)alcoholic beverages, beer, Molson Canadian
B)Molson Canadian, beer, alcoholic beverages
C)beer, Molson Canadian, alcoholic beverages
D)beer, alcoholic beverages, Molson Canadian

Question

Quizplus · Accepted Answer

Molson Canadian is a specific brand, making its demand more elastic due to the availability of close substitutes. Beer is a broader category with fewer substitutes, making it less elastic than Molson Canadian. Alcoholic beverages encompass a wide range of products, making their demand the least elastic.

Rank These Three Items in Terms of the Elasticity of the Demand