The demand for all carbonated beverages is likely to be ________ the demand for Dr. Pepper.
A) more elastic than
B) perfectly elastic compared to
C) less elastic than
D) perfectly inelastic compared to

Question

Quizplus · Accepted Answer

The demand for Dr. Pepper is likely to be more inelastic compared to the demand for all carbonated beverages because Dr. Pepper has a unique taste and loyal customer base, which makes consumers less responsive to changes in price. On the other hand, the demand for all carbonated beverages is likely to be more elastic as consumers have more substitutes to choose from, making them more responsive to changes in price.

The Demand for All Carbonated Beverages Is Likely to Be