In some markets consumers may buy many different brands of a product.Which of the statements below best represents a situation where demand for a particular brand would be very elastic?
A) "The different brands are almost identical so I always buy the cheapest."
B) "I use so little of that product that when I do buy it,I don't pay much attention to the price."
C) "The brand I buy is so superior to other available brands that I hardly consider the others."
D) "I pinch pennies in buying other products,but like most people I feel I owe it to myself to get the best brand of this product."

Question

Quizplus · Accepted Answer

If consumers view the different brands as almost identical, they are more likely to purchase the cheapest option since they do not perceive a strong difference between brands. This means that the demand for a particular brand would be very elastic, meaning that even a slight increase in the price would cause consumers to switch to a cheaper brand.

In Some Markets Consumers May Buy Many Different Brands of a Product.Which