The demand for Exxon gasoline is ____ the demand for all gasoline.
A)exactly as elastic as, and of a different slope from
B)more elastic than
C)less elastic than
D)exactly as elastic and of a different slope from

Question

The demand for Exxon gasoline is ____ the demand for all gasoline.
A)exactly as elastic as, and of a different slope from 
B)more elastic than 
C)less elastic than 
D)exactly as elastic and of a different slope from

Quizplus · Accepted Answer

Exxon gasoline is a specific brand of gasoline, therefore it has close substitutes in terms of other brands of gasoline. Therefore, the demand for Exxon gasoline is more elastic than the demand for all gasoline, which includes different brands and has a more inelastic demand.

The Demand for Exxon Gasoline Is ____ the Demand for All