Of the following, which good has the most elastic demand?
A) Breakfast food
B) Breakfast cereal
C) Sultana Bran purchased at a Woolworths supermarket
D) Food
E) Sultana Bran

Question

Quizplus · Accepted Answer

Sultana Bran purchased at a Woolworths supermarket is the most specific and narrow option given. This means that consumers have many substitutes available to them that are similar to Sultana Bran, making the demand more elastic. Additionally, being purchased at a specific supermarket means consumers have the option to purchase the same product at a different location, also increasing elasticity. Therefore, option C has the most elastic demand.

Of the Following, Which Good Has the Most Elastic Demand