The demand for Godiva pumpkin truffles is likely quite elastic because
A) truffles melt easily.
B) this particular type of chocolate is viewed as a necessity by many chocolate lovers.
C) the market is broadly defined.
D) other types of chocolate are good substitutes for this particular flavor.

Question

Quizplus · Accepted Answer

The availability of other types of chocolate as viable substitutes makes the demand for Godiva pumpkin truffles likely quite elastic. If the price of Godiva pumpkin truffles increases, consumers can easily switch to other types of chocolates that offer similar flavors. This means that consumers are not likely to be willing to pay a premium price for this specific type of chocolate, as there are many alternatives available.

The Demand for Godiva Pumpkin Truffles Is Likely Quite Elastic