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.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good. It does not directly measure brand loyalty. Brand loyalty refers to consumers' preference for a particular brand, which can lead to less sensitivity to price changes, but high price elasticity typically indicates that consumers are willing to switch to other products if the price changes, not that there is brand loyalty.

Which of the Following Statements Is Not True