According to the Case in Point on Conventional and Organic Milk, the demand for organic milk is price _____ and the demand for conventional milk is price _____.
A) elastic; elastic
B) inelastic; elastic
C) elastic; inelastic
D) inelastic; inelastic

Question

Quizplus · Accepted Answer

The Case in Point states that the demand for organic milk is price elastic, meaning that consumers are sensitive to changes in the price of organic milk and will switch to another product (such as conventional milk) if the price of organic milk increases. On the other hand, the demand for conventional milk is price inelastic, meaning that consumers are not as sensitive to changes in the price of conventional milk and will continue to purchase it even if the price increases.