Which of the following would most likely exhibit the highest price elasticity of demand?
A) gasoline
B) Colgate toothpaste
C) motor oil
D) salt

Question

Quizplus · Accepted Answer

Colgate toothpaste would most likely exhibit the highest price elasticity of demand because there are many close substitutes available. If the price of Colgate toothpaste increases, consumers can easily switch to another brand, making its demand more sensitive to price changes compared to gasoline, motor oil, and salt, which have fewer direct substitutes or are necessities with less sensitivity to price changes.

Which of the Following Would Most Likely Exhibit the Highest