Which of the following items will have the largest price elasticity of demand?
A) Food
B) Oranges from Coles
C) Fruit
D) Oranges

Question

Quizplus · Accepted Answer

Oranges from Coles will have the largest price elasticity of demand because they are a more specific category compared to the broader categories of food or fruit, and compared to oranges in general. This specificity means consumers can more easily find close substitutes if the price of oranges from Coles increases, making the demand for them more sensitive to price changes.

Which of the Following Items Will Have the Largest Price