Which price elasticity factor explains why nonbranded goods (such as store-brand bleach) tend to have less elastic demand than branded goods (like Clorox bleach)?
A) time to adjust
B) share of budget
C) definition of a market
D) necessities

Question

Quizplus · Accepted Answer

The definition of a market factor explains the elasticity difference because nonbranded goods often compete in a broader market where consumers see fewer direct substitutes, making their demand less elastic compared to branded goods, which are perceived as having more specific attributes and direct substitutes.

Which Price Elasticity Factor Explains Why Nonbranded Goods (Such as Store-Brand