Which of the following is more likely to have perfectly elastic or nearly perfectly elastic demand?
A) a textbook required for an economics course
B) the guitar produced by a master craftsman
C) cotton produced by a Texas farmer
D) the services offered by the only allergist in the community

Question

Quizplus · Accepted Answer

Cotton produced by a Texas farmer is more likely to have perfectly elastic or nearly perfectly elastic demand because it is a commodity. Commodities are goods for which there are many suppliers and they are essentially identical, allowing buyers to easily switch from one supplier to another without a loss in value, leading to nearly perfectly elastic demand.

Which of the Following Is More Likely to Have Perfectly