The demand for all carbonated beverages is likely to be ________ the demand for Pepsi.
A)more elastic than
B)perfectly elastic compared to
C)less elastic than
D)perfectly inelastic compared to

Question

Quizplus · Accepted Answer

The demand for all carbonated beverages is likely to be less elastic than the demand for Pepsi because Pepsi is a specific brand of carbonated beverage and therefore has a more narrow market. Consumers may be willing to switch to other brands of carbonated beverages if the price of Pepsi increases, making the demand for all carbonated beverages comparatively less elastic.

The Demand for All Carbonated Beverages Is Likely to Be