For which of the following goods are consumers likely to have the most elastic demand?
A) clothing
B) sweaters
C) wool sweaters
D) purple wool sweaters

Question

Quizplus · Accepted Answer

The demand for purple wool sweaters is likely to be the most elastic because it is a very specific category of goods. Consumers can easily substitute it with other types of sweaters or clothing if the price increases, making its demand more sensitive to price changes.

For Which of the Following Goods Are Consumers Likely to Have