The demand for Hubba Bubba bubble gum is likely
A) elastic because gum is expensive relative to other snacks.
B) elastic because there are many close substitutes for Hubba Bubba.
C) elastic because bubble gum is regarded as a necessity by many people.
D) inelastic because it is consumed quickly, making the relevant time horizon short.

Question

Quizplus · Accepted Answer

The availability of close substitutes for Hubba Bubba bubble gum makes the demand elastic, meaning that consumers are more likely to switch to a different brand or product if the price of Hubba Bubba increases.

The Demand for Hubba Bubba Bubble Gum Is Likely