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

Nike running shoes are likely to have the highest price elasticity of demand because they are a luxury brand and have many substitutes such as other high-end running shoes and athletic apparel brands. Consumers are likely to be more sensitive to price changes for luxury items like Nike running shoes, and will have many options to choose from if the price becomes too high.

Which of the Following Is Likely to Have the Highest