What do products such as movies,tomatoes and restaurant meals have in common?
A)They are all inferior goods.
B)They all are likely to have incomes elasticities less than one.
C)The demand for all three goods is price elastic.
D)The demand for all three goods is price inelastic.
E)They all have a small number of substitute goods.

Question

Quizplus · Accepted Answer

The demand for movies, tomatoes, and restaurant meals is price elastic, meaning that a change in price leads to a relatively larger change in the quantity demanded. These goods are often considered non-essential or luxury items, for which consumers can easily adjust their consumption in response to price changes.

What Do Products Such as Movies,tomatoes and Restaurant Meals Have