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

Question

Quizplus · Accepted Answer

The demand for Exxon gasoline is more elastic than the demand for all gasoline because consumers can more easily switch between different brands of gasoline (like Exxon to Shell) than they can switch away from gasoline altogether. This makes the demand for a specific brand, like Exxon, more sensitive to price changes compared to the demand for all gasoline.

The Demand for Exxon Gasoline Is ____ the Demand for All