Which of the following statements would you expect to be true about price elasticities of demand for T-shirts and clothing?
A)Compared with clothing,T-shirts have a lower price elasticity of demand because they are specifically defined.
B)Because T-shirts are clothing,but not all clothing is T-shirts,T-shirts would have a lower price elasticity of demand than clothing.
C)Clothing has a higher price elasticity of demand because it is a necessity.
D)T-shirts would have the same price elasticity of demand as clothing.
E)Clothing has a lower price elasticity of demand because it is more broadly defined.

Question

Quizplus · Accepted Answer

Clothing, being more broadly defined, tends to have a lower price elasticity of demand compared to specific items like T-shirts, as there are fewer substitutes for the entire category of clothing.

Which of the Following Statements Would You Expect to Be