Which of the following is likely to have the most price elastic demand?
A)fountain ink pens
B)milk
C)disposable diapers
D)shampoo

Question

Quizplus · Accepted Answer

Fountain ink pens are a luxury good and have close substitutes such as ballpoint pens or gel pens. Additionally, they are not necessary for daily activities and can be easily replaced by other alternatives. These factors make the demand for fountain ink pens more elastic, meaning that a small change in price will lead to a more significant change in quantity demanded. On the other hand, milk, disposable diapers, and shampoo are necessities and have limited substitutes. Therefore, their demand is relatively inelastic, and a change in price will not significantly affect the quantity demanded.

Which of the Following Is Likely to Have the Most