Which of these products would have the highest price elasticity of demand?
A) cigarettes
B) hot dogs sold by a street vendor
C) gasoline
D) blood-thinning medication prescribed to patients who have had a stroke

Question

Quizplus · Accepted Answer

Hot dogs sold by a street vendor would have the highest price elasticity of demand because there are many close substitutes available. If the price of hot dogs increases, consumers can easily switch to other food items, making the demand for hot dogs more sensitive to price changes.

Which of These Products Would Have the Highest Price Elasticity