The demand for ice cream is _____ price elastic than the demand for frozen treats overall because _____.
A) less; ice cream has fewer substitutes than frozen treats.
B) more; ice cream has fewer substitutes than frozen treats.
C) less; the scope of the market for ice cream is less broadly defined
D) more; the scope of the market for ice cream is less broadly defined

Question

Quizplus · Accepted Answer

The demand for a specific product like ice cream is more price elastic compared to a broader category like frozen treats because the narrower scope of the market means consumers can more easily find substitutes within the broader category if the price of ice cream increases.

The Demand for Ice Cream Is _____ Price Elastic Than