Which of the following is likely to have the highest price elasticity of demand?
A)Shoes
B)Running shoes
C)Nike running shoes
D)The price elasticity of demand will be the same for all of the answers listed.

Question

Quizplus · Accepted Answer

There are more substitutes for a particular brand of running shoes than for running shoes in general. And there are more substitutes for running shoes than for shoes in general. Thus, of the goods listed, the price elasticity of demand will be the highest for Nike running shoes.

Which of the Following Is Likely to Have the Highest