If Joe says that nothing comes close to Pepsi,his demand for Pepsi is likely to be _____
A)relatively price elastic.
B)relatively income elastic.
C)relatively price inelastic.
D)unit elastic.
E)perfectly elastic.

Question

Quizplus · Accepted Answer

When Joe says that nothing comes close to Pepsi, it shows that he has a strong preference for Pepsi and is unlikely to switch to other substitutes for a small change in price. This suggests that his demand for Pepsi is relatively price inelastic.

If Joe Says That Nothing Comes Close to Pepsi,his Demand