Which of the following goods is likely to have the most elastic demand curve?
A) Tobacco products.
B) Petrol.
C) Medical care.
D) Honda automobiles.

Question

Quizplus · Accepted Answer

Honda automobiles have a more elastic demand curve compared to tobacco products, petrol, and medical care because consumers can more easily find substitutes for a specific brand of automobile, such as switching from Honda to Toyota, compared to finding substitutes for petrol, medical care, or tobacco products, which have fewer close substitutes and are often considered necessities or have addictive qualities.

Which of the Following Goods Is Likely to Have the Most