Which of these is the MOST likely to have the highest elasticity of demand?
A) salt
B) pepper
C) dog food
D) theme park tickets

Question

Quizplus · Accepted Answer

Theme park tickets are likely to have the highest elasticity of demand because they are a luxury item, not a necessity. This means that consumers are more sensitive to price changes for theme park tickets than for essential goods like salt, pepper, or even dog food. When the price of a luxury item increases, demand tends to decrease significantly, and vice versa.

Which of These Is the MOST Likely to Have the Highest