All of the following statements are true EXCEPT
A) the demand for food is less elastic than the demand for a Hawaiian vacation.
B) the demand for clothing is less elastic than the demand for blue jeans.
C) the demand for gasoline is more elastic the longer the time elapsed.
D) the smaller the proportion of income spent on a good, the more inelastic demand will be.
E) the demand for Nike running shoes is less elastic than the demand for shoes.

Question

Quizplus · Accepted Answer

The demand for Nike running shoes is more elastic than the demand for shoes in general because it is a more specific category, and consumers can more easily find substitutes.

All of the Following Statements Are True EXCEPT