The demand for a particular brand of a product is more elastic than the demand for the product category.

Question

Quizplus · Accepted Answer

The demand for a specific brand within a product category is typically more elastic because consumers can easily switch to other brands within the same category if the price of one brand increases, whereas the demand for the entire product category is less elastic since it encompasses all brands and alternatives within that category, leaving fewer substitutes outside the category.

The Demand for a Particular Brand of a Product Is