Which of the following would be an example of a good with elastic demand?
A)Bread
B)Work Shoes
C)Prescription medicine
D)Luxury speedboat
E)Raincoats in winter

Question

Quizplus · Accepted Answer

Luxury speedboats are considered a luxury item with a high price, and consumers are very sensitive to changes in price. As such, a decrease in price is likely to lead to a larger increase in demand, and vice versa, making it a good with elastic demand. The other options (bread, work shoes, prescription medicine, and raincoats in winter) are generally considered necessities and are not as sensitive to changes in price, making them goods with inelastic demand.

Which of the Following Would Be an Example of a Good