Pizza Hut pizza has more close substitutes than does food in general. The price elasticity of demand for Pizza Hut pizza is _______ the price elasticity of demand for food in general.
A) greater than
B) the same as
C) less than
D) not comparable to

Question

Quizplus · Accepted Answer

The price elasticity of demand for Pizza Hut pizza is greater than the price elasticity of demand for food in general because there are more close substitutes for Pizza Hut pizza, making consumers more sensitive to changes in its price.

Pizza Hut Pizza Has More Close Substitutes Than Does Food