Which would be the best item to use for an analogy to describe elastic demand?
A) A roller coaster
B) An Ace bandage for a knee injury
C) Rubber tie-downs to hold items in the back of a truck
D) The production of aluminum in an aluminum plant

Question

Quizplus · Accepted Answer

Elastic demand means that there is a large change in quantity demanded in response to a small change in price. An Ace bandage for a knee injury is a good analogy because when the knee is injured, it becomes more sensitive to pressure and movement, which means that a small amount of pressure from the bandage can cause a large amount of discomfort. Similarly, a small change in price can have a large effect on the quantity demanded for a product with elastic demand.

Which Would Be the Best Item to Use for an Analogy