Which of these is likely to have the highest price elasticity of demand?
A) toilet paper
B) Charmin toilet paper
C) toothpaste
D) gasoline

Question

Quizplus · Accepted Answer

Charmin toilet paper is likely to have the highest price elasticity of demand because it is a branded product, and consumers can easily switch to other brands or generic products if the price of Charmin increases, making its demand more sensitive to price changes compared to more generic or essential products like toilet paper in general, toothpaste, or gasoline, which have fewer direct substitutes and are considered necessities.

Which of These Is Likely to Have the Highest Price