Which of the following is likely to have the most price elastic demand?
A) gasoline in the short run
B) dentist's visits
C) ice cream
D) deodorant

Question

Quizplus · Accepted Answer

Ice cream is a luxury good with many substitutes, which makes its demand more elastic. It also has a low necessity factor, meaning people are more likely to cut back on it if prices rise. On the other hand, gasoline and deodorant are both essential goods with limited substitutes, making their demand less elastic. Dentist's visits are also necessary for good oral health, making their demand relatively inelastic.

Which of the Following Is Likely to Have the Most