The price elasticity of demand would most likely be highest for which of the following goods?
A)food (in general)
B)cars (in general)
C)clothing (in general)
D)Ford cars
E)a, b, or c

Question

Quizplus · Accepted Answer

The price elasticity of demand is generally higher for more narrowly defined goods, as consumers can find closer substitutes. Ford cars represent a more specific category than the broad categories of food, cars in general, or clothing, making it easier for consumers to switch to other brands if prices rise, thus exhibiting higher price elasticity.

The Price Elasticity of Demand Would Most Likely Be Highest