The owner of an Oakley store has a more__________ demand curve and the owner of a chicken farm has a more__________ demand curve.
A)inelastic;inelastic
B)elastic;inelastic
C)inelastic;elastic
D)elastic;elastic

Question

Quizplus · Accepted Answer

The owner of an Oakley store has a more inelastic demand curve because sunglasses are a luxury item and have few close substitutes. Therefore, consumers are willing to pay a higher price for Oakley sunglasses because they are perceived as high-quality and fashionable. On the other hand, the owner of a chicken farm has a more elastic demand curve because chicken is a commonly consumed food item with many close substitutes (such as turkey or beef). Consumers are more price sensitive when it comes to purchasing food, and will switch to substitutes if the price of chicken rises too much.

The Owner of an Oakley Store Has a More__________ Demand