If Joe says that nothing comes close to a Pepsi, his demand for Pepsi is likely to be
A)relatively price elastic
B)relatively income elastic
C)relatively price inelastic
D)unit elastic
E)infinitely elastic

Question

Quizplus · Accepted Answer

When Joe says that nothing comes close to a Pepsi, it indicates that he has a strong preference for Pepsi and is unlikely to switch to other brands even if the price of Pepsi increases. Therefore, his demand for Pepsi is likely to be relatively price inelastic.

If Joe Says That Nothing Comes Close to a Pepsi