The demand for shoes is _____ price elastic than the demand for sneakers because the scope of the market for shoes is _____ broadly defined.
A) less; less
B) more; less
C) less; more
D) more; more

Question

Quizplus · Accepted Answer

The demand for shoes is less price elastic than the demand for sneakers because shoes represent a broader category, including all types of footwear, whereas sneakers are a more specific category. A broader market scope (shoes) tends to have fewer substitutes and thus a lower price elasticity of demand compared to a more narrowly defined category (sneakers), which has more close substitutes and therefore a higher price elasticity.

The Demand for Shoes Is _____ Price Elastic Than the Demand