The demand for strawberry ice cream tends to be relatively price elastic because:
A) for most people there are many close substitutes for strawberry ice cream.
B) there are few substitutes for it.
C) it has to be consumed very quickly.
D) it costs so little.

Question

Quizplus · Accepted Answer

The reason why the demand for strawberry ice cream tends to be relatively price elastic is that there are many close substitutes available in the market, such as other flavors of ice cream or other frozen desserts. So, if the price of strawberry ice cream increases, consumers may switch to these substitutes, leading to a significant decrease in the quantity demanded of strawberry ice cream.

The Demand for Strawberry Ice Cream Tends to Be Relatively