The demand for markers is _____ price elastic than the demand for Sharpies because _____.
A) less; markers require a smaller portion of one's income
B) more; markers require a smaller portion of one's income
C) less; the scope of the market for markers is more broadly defined
D) more; the scope of the market is for markers is more broadly defined

Question

Quizplus · Accepted Answer

The demand for a broadly defined category of goods, like markers in general, tends to be less price elastic compared to a specific brand within that category, like Sharpies. This is because consumers can easily switch between different brands of markers if the price of one brand changes, but they have fewer alternatives if the price of all markers changes.

The Demand for Markers Is _____ Price Elastic Than the Demand