The demand for dolls is _____ price elastic than the demand for Barbie dolls because _____.
A) less; the scope of the market for dolls is more broadly defined
B) more; the scope of the market for dolls is more broadly defined
C) less; Barbie dolls have more available substitutes
D) more; Barbie dolls have more available substitutes

Question

Quizplus · Accepted Answer

The demand for a broadly defined category like dolls is less price elastic compared to a specific brand like Barbie dolls because consumers have fewer substitutes for the category as a whole than they do for a specific brand within that category.

The Demand for Dolls Is _____ Price Elastic Than the Demand