Which of the following statements is not true?
A) Price elasticity of demand for basic foods is low.
B) When price elasticity of demand is very high, we say there is brand loyalty.
C) The availability and price of substitutes affect the elasticity of demand for a good or service.
D) When goods have very low prices, the elasticity of demand is usually quite low.
E) Elasticities increase as the price of the good increases.

Question

Quizplus · Accepted Answer

When price elasticity of demand is very high, it indicates that consumers are very responsive to price changes, which is contrary to brand loyalty, where consumers are less responsive to price changes.

Which of the Following Statements Is Not True