For which of the following is demand likely to be most sensitive to price increases?
A) Prescription drugs.
B) College tuition for last-semester seniors.
C) Electricity.
D) Hospital care.
E) A specific brand of soft drink.

Question

Quizplus · Accepted Answer

A specific brand of soft drink is likely to have a high price elasticity of demand because there are many substitutes available in the market. If the price of the specific brand increases, consumers may switch to a competitor's brand.

For Which of the Following Is Demand Likely to Be