The demand for Werthers candy is likely
A) elastic because candy is expensive relative to other snacks.
B) elastic because there are many close substitutes for Werthers.
C) elastic because Werthers are regarded as a necessity by many people.
D) inelastic because it is usually eaten quickly,making the relevant time horizon short.

Question

Quizplus · Accepted Answer

The availability of close substitutes makes the demand for Werthers elastic. If the price of Werthers were to increase, consumers could easily switch to another brand of candy or snack that is cheaper, making the demand for Werthers more sensitive to price changes.

The Demand for Werthers Candy Is Likely