Which of the following is most likely to be elastic with respect to demand?
A) Cigarettes.
B) Shoes.
C) Gasoline in the short run.
D) Airline travel in the long run.

Question

Quizplus · Accepted Answer

Airline travel in the long run is most likely to be elastic with respect to demand because consumers have more flexibility to adjust their travel plans over a longer time period. In contrast, cigarettes are often addictive and have few substitutes, making them less responsive to changes in price. Shoes are also less elastic because they are often seen as a necessity and have a wide range of prices and qualities. Gasoline may be elastic in the long run as consumers can choose to buy more fuel-efficient vehicles or use public transportation, but in the short run, there are few alternatives, making it less elastic.

Which of the Following Is Most Likely to Be Elastic